Thoma Bravo completes $2.1b Imperva acquisition

Shlomo Kramer Photo: Ben Ratner, Reuters
Shlomo Kramer Photo: Ben Ratner, Reuters

Thoma Bravo is paying a 29.5% premium on the market price for cybersecurity company Imperva's shares.

The acquisition of cybersecurity company Imperva for $2.1 billion has been completed, and the company is being delisted from Nasdaq. Imperva will be a private company fully owned by US private equity fund Thoma Bravo.

Thoma Bravo announced its acquisition of Imperva in October and completed the acquisition within three months after obtaining the necessary approval from the regulators and Imperva's shareholders. The fund is paying $55.75 per Imperva share, a 29.5% on Imperva's share price on the deal date.

"This is a new chapter for Imperva, and we are looking forward to our partnership with Thoma Bravo," said Imperva president and CEO Chris Hylen. "Thoma Bravo has extensive strategic expertise, and realizes Imperva's value in assisting customers in protecting their information and applications in all locations - in a data center, the cloud, or both. We could not wish for a better strategic partner to take us to the next stage of growth."

Thoma Bravo managing partner Seth Boro said that Imperva was a leading seller in the cyber security market, and that the fund was very impressed by the company's management. "We are looking forward to cooperation in order to accelerate the company's business and create greater value for Imperva's employees, customers, and partners throughout the world," he commented.

Connection began in the summer of 2016

Imperva, which provides organizations with cyber security solutions, was founded by Check Point Software Technologies Ltd. (Nasdaq: CHKP) cofounder and prominent high-tech entrepreneur Shlomo Kramer, Mickey Boodaei and Amichai Shulman in 2002. Kramer was Imperva's CEO until 2014. He sold his remaining shares in the company on the stock exchange in late 2017 for $90 million at an average price of $43 per share.

Imperva's center of activity is in the US, but it also has activity in Israel, and 450 of its employees, 44%, were in Israel as of the end of 2017. Most of Imperva's R&D takes place in Israel.

The connection between Imperva and Thoma Bravo began in the summer of 2016. Imperva published disappointing financial results at the time, and its share price plunged. Activist investment fund Elliott Management invested in Imperva's shares, acquiring a 10% stake. Elliott demanded changes in Imperva's policy, and it was reported shortly afterwards that Imperva was considering the possibility of being acquired. The company contacted a large number of concerns likely to be interested in the acquisition at the time, including Thoma Bravo, but no deal was reached, and Imperva embarked on a internal restructuring plan. The contact with Thoma Bravo was renewed in November 2017, and a deal was agreed several months later.

Published by Globes, Israel business news - - on January 13, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Shlomo Kramer Photo: Ben Ratner, Reuters
Shlomo Kramer Photo: Ben Ratner, Reuters
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