British cybersecurity provider Sophos Group plc today said that it has received a buyout offer from Thoma Bravo LLC valuing it at $3.9 billion.

The company’s board plans to recommend the bid unanimously to shareholders. If the deal is approved, Sophos investors will receive $7.40 per share in cash, a 37% premium to the stock’s last closing price on Friday.

Founded back in 1985, Sophos is one of the security industry’s most established players. It’s best known for its line of enterprise-focused endpoint protection and firewall products. The company has over the years added numerous other security-related offerings to its portfolio ranging from the Sophos Email inbox protection service to Sophos Central, which helps organizations that use its software manage their installations.

Globally, Sophos counts more than 400,000 businesses as customers and protects some 100 million users. A portion of that installed base hails from the consumer market, where the company is a major player as well thanks to its free home antivirus service.

Thoma Bravo’s $3.9 billion offer for Sophos represents one of its largest cybersecurity bets in recent memory. Previously, the private equity firm paid $2.1 billion to buy application protection provider Imperva Inc. and earlier inked a $1.6 billion deal for Barracuda Networks Inc., a major maker of network security software.

The three companies have a lot in common. Like Imperva and Barracuda at the time of their acquisition, Sophos is a publicly traded security provider with a long history in the market. Another common point Sophos shares with the firms: The company is currently shifting away from its legacy on-premises products and towards selling to cloud-based solutions.

Sophos groups these solutions under its “next generation business” in earnings reports. The three months ended June 30 saw the business’s sales grow 43% at constant currency, to $100.2 million, while total revenues rose a more modest 7% to reach $180.2 million.

“Sophos is actively driving the transition in next-generation cybersecurity solutions, leveraging advanced capabilities in cloud, machine learning, APIs, automation, managed threat response, and more,” Chief Executive Officer Kris Hagerman said in a statement. “We see this offer as a compelling validation of Sophos, its position in the industry and its progress.”

Thoma Bravo expects to complete the acquisition in the first quarter of 2020 pending regulatory approvals. 

Photo: Sophos