Permira to Acquire Mimecast for $5.8B
Mimecast to be Acquired by Permira in $5.8 Billion Deal
Following Thoma Bravo’s acquisition of Proofpoint for $12.3 billion nine months ago, Mimecast is also set to become a privately held company. The security firm announced today that Permira will acquire Mimecast in an all-cash transaction valued at $5.8 billion.
Mimecast has been a publicly traded company since 2015. The agreement stipulates a price of $80 per share, as confirmed by both involved parties.
Increased Private Equity Activity in the Tech Sector
This announcement arrives shortly after reports indicated Thoma Bravo was establishing a $35 billion fund specifically for tech company buy-outs. The current year has witnessed a substantial increase in activity from private equity firms within the technology sector.
Cybersecurity Demand Fuels the Deal
The shift towards remote work and increased online activity, accelerated by the COVID-19 pandemic, has significantly heightened the importance of cybersecurity. This places a particular emphasis on Mimecast’s core expertise: email security.
Mimecast’s Customer Base and Market Position
Listed on the Nasdaq, Mimecast serves over 39,000 businesses. Approximately 20,000 of these clients utilize Mimecast’s solutions to safeguard their Microsoft 365 environments.
The company’s stock had been steadily increasing in value, closing at $75 per share last night with a market capitalization nearing $5 billion. The current deal represents a premium over this valuation.
Permira’s Perspective on the Acquisition
Michail Zekkos and Ryan Lanpher, Partners at Permira, jointly stated, “We have consistently held Mimecast in high regard, appreciating its leadership and dedicated workforce.”
They continued, “Given that email remains the primary entry point for cyberattacks, and the sophistication of phishing and impersonation tactics continues to grow, the need for robust organizational data and infrastructure protection is paramount.”
“Mimecast’s innovative platform, coupled with its superior security measures and scalable infrastructure, uniquely positions it to assist organizations of all sizes in defending against malicious activities. We are eager to apply our experience in expanding global technology businesses as we collaborate with Peter and his team during their next phase of expansion.”
Mimecast Leadership’s Response
Peter Bauer, Chairman and CEO of Mimecast, commented, “This marks an exciting new phase for Mimecast.”
“Our team has demonstrated exceptional performance in cultivating customer relationships and advancing our platform’s capabilities. Permira possesses a proven history of successfully supporting companies in achieving their growth objectives and strategic aspirations, and we anticipate a productive partnership to further enhance the cybersecurity posture and resilience of organizations globally. This outcome is beneficial for both our company and our shareholders.”
Strategic Review and Sale Process
Prior to this agreement, Mimecast was undergoing a strategic review. Speculation emerged in late October suggesting the company was exploring options for raising capital or potentially selling itself.
Board of Directors’ Statement
Robert Schechter, an independent director of Mimecast and chair of the Special Committee, stated, “This transaction resulted from a strategic evaluation overseen by an independent Board committee, which involved discussions with numerous potential buyers.”
“We are pleased to provide our shareholders with substantial immediate cash value and believe this transaction represents the optimal path forward for Mimecast and all stakeholders.”
Timeline and Approvals
The completion of the transaction is anticipated in the first half of 2022. This is contingent upon fulfilling standard closing conditions, including shareholder approval and necessary regulatory clearances.
