UPDATED 12:12 EDT / OCTOBER 10 2018

SECURITY

In another cybersecurity buy, Thoma Bravo to take Imperva private in $2.1B buyout

Imperva Inc., a major provider of cybersecurity software that has in recent years worked to transition to a cloud-based business model, is going private.

The company today announced that it agreed to be taken off the stock exchange by private equity firm Thoma Bravo LLC in an acquisition worth $2.1 billion. The sum works out to $55.75 per share, which is nearly 30 percent higher than the Tuesday closing price of Imperva’s stock.

The premium is partially a reflection of the strong progress that the company has made in adjusting to enterprises’ accelerating shift to the cloud. Imperva grew subscription revenues to $36.5 million in its second quarter ended June 30, a 30 percent increase from a year ago. Total sales climbed 14 percent, to $84.8 million.

Imperva’s security business is built on three product lines that each focus on a different element of enterprise network protection operations. Its most well-known offering is Incapsula, a content delivery network with a built-in firewall. The platform can protect websites against distributed denial-of-service attacks, detect malware infections and block a wide range of other common threats.

Imperva offers Incapsula alongside SecureSphere, a solution for protecting databases and applications. Companies can deploy the platform on-premises or in the cloud to centralize breach prevention activities across workloads. CounterBreach, Imperva’s third major product line, complements the other two with machine learning-powered features for investigating breaches.

The company expanded its portfolio into yet another area in July with the $140 million acquisition of Prevoty Inc., an application protection startup. Prevoty developed a platform that enables enterprises to embed security controls directly into their cloud and on-premises workloads.

Imperva said moving under Thoma Bravo’s wing will enable it to pursue its growth efforts “with the flexibility to focus on execution and drive to be a world-class profitable growth company.” The current management team is set to stay at the the helm to lead the drive after the acquisition is completed.

Thoma Bravo expects to wrap up the transaction early next quarter at the latest. Imperva represents a big addition to the firm’s security portfolio, which includes a majority stake in access management giant Centrify Inc. that it acquired three months ago.

“Thoma Bravo has an excellent track record of supporting and adding value to leading cybersecurity companies, and we are delighted to bring on a partner with their caliber of strategic expertise,” Imperva Chief Executive Officer Chris Hylen said in a statement. “The company will have greater flexibility to focus on executing our long-term strategy.”

Photo: Imperva

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