Private equity firm Thoma Bravo is acquiring identity security platform Ping Identity for approximately $2.4 billion, expanding further into the cybersecurity sector following the purchases of Sophos, Proofpoint and Sailpoint Technologies.
The deal values Ping Identity shares at $28.50, a premium of 63% over the Aug. 2 closing price, according to the Wednesday (Aug. 3) announcement.
“This compelling transaction is a testament to Ping Identity’s leading enterprise identity solutions, our talented team, and our outstanding customers and partners,” said Ping Identity CEO Andre Durand.
“Identity security and frictionless user experiences have become essential in the digital-first economy and Ping Identity is better positioned than ever to capitalize on the growing demand from modern enterprises for robust security solutions,” Durand said.
Thoma Bravo acquired FinTech Bottomline Technologies in May for $2.6 billion, and in April, the firm picked up cybersecurity firm SailPoint Technologies for $6.9 billion. Thoma Bravo was the majority stakeholder in SailPoint prior to its initial public offering in 2017, and sold its stake in 2018.
Ping Identity’s authentication and security services are used by major businesses such as Chevron Corp and HP, according to Reuters, and the purchase is expected to compliment Thoma Bravo’s existing acquisitions.
“We could foresee them all being stitched together as an all-in-one identity platform at some point,” D.A. Davidson analyst Rudy Kessinger told Reuters. He added that the deal was “one of the least surprising acquisitions” he has ever seen.
Headquartered in Denver, Colorado, Ping Identity was founded in 2002 by Durand and provides cloud identity security solutions serving over 50% of the Fortune 100, 25% of the Fortune 500 and over 1,500 enterprises worldwide.
Thoma Bravo was founded in 2008 and is headquartered in Chicago, Illinois, with offices in San Francisco, California, and Miami, Florida.