Private equity firm Thoma Bravo continued its investment in the security space today, announcing that it has agreed to acquire Blue Coat Systems, a provider of Web security and WAN optimization solutions, for approximately $1.3 billion in cash.
Blue Coat is best known in the security space for its web gateway appliances and solutions for monitoring and filtering users’ Internet activity.
The acquisition, led by Thoma Bravo also includes the Ontario Teachers’ Pension Plan through its private investor department, Teachers’ Private Capital.
Under the terms of the agreement, Blue Coat shareholders will receive $25.81 in cash for each share of Blue Coat common stock, representing a premium of approximately 48% over Blue Coat’s closing price on December 8, 2011 and a premium of approximately 62% over the 60-day trailing average for the period ended December 8, 2011.
Related: Increased Spending Fuels Spike in Cyber Security Industry M&A Activity
In August, Blue Coat named Gregory S. Clark as president and chief executive officer and a member of the board of directors. The announcement was made at the same time the company reported financial results for its first quarter of fiscal 2012 that came in below expectations.
“Over the last six months, our Board of Directors engaged in a comprehensive review of all strategic options available to Blue Coat,” said David W. Hanna, Chairman of the Board, Blue Coat Systems, Inc. “After an extensive evaluation of strategic alternatives with our independent advisors, the Board has determined that the definitive agreement with Thoma Bravo provides an attractive all-cash valuation to our shareholders.”
“Blue Coat marks the continuation of Thoma Bravo’s investment efforts in the security technology industry, and is the firm’s fifth security technology platform investment,” said Seth Boro, partner at Thoma Bravo.
Thoma Bravo announced its plans to acquire privately-held TripWire in May 2011 for an undisclosed sum. The private equity firm was also the leader of an investor group that acquired SonicWALL back in June 2010 in a transaction valued at approximately $717 million. The firm also has investments in the other security firms including Entrust, Attachmate, and Embarcadero Technologies.
The transaction is subject to customary closing conditions, including requisite regulatory approvals and approval of Blue Coat shareholders. Blue Coat expects the transaction to close in the first calendar quarter of 2012
According to a recent report released by PwC, merger and acquisition deal activity in the cyber security space has exceeded $22 billion globally since 2008. PwC’s report said the first half of 2011 brought 37 deals valued at over $10 billion, representing a 70 percent increase compared to full year 2010. This is another to add to the list.
