Barracuda Networks Is Going Private in $1.6 Billion Deal

Digital security firm Barracuda Networks Inc. is being acquired by private equity investment firm Thoma Bravo LLC, in an all-cash deal totaling $1.6 billion.

Now traded on the New York Stock Exchange, Barracuda will operate as a private company after closing. The firm specializes in cloud-based email security and management, network security and data protection solutions.

Barracuda’s board of directors unanimously approved the transaction, in which shareholders of record will receive $27.55 in cash per share. The company’s ten-day average stock price has been $22.49. 

The acquisition is expected to close by the end of Barracuda’s fiscal year on February 28, 2018. The transaction is subject to approval by Barracuda’s shareholders and regulatory authorities 

Serving as financial advisory to Barracuda is Morgan Stanley & Co. LLC. Wilson Sonsini Goodrich & Rosati, Professional Corporation is serving as its legal advisors.

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Financing is being supplied by Goldman Sachs & Co. LLC, Credit Suisse, and UBS Investment Bank, and they are also serving as financial advisors to Thomas Bravo. Kirkland & Ellis LLP is serving as Thoma Bravo’s legal counsel. 

Earlier this month, Barracuda announced that it was acquiring Sonian Inc., a provider of cloud archiving and business information, in a move that some observers said pointed towards increased consolidation in the security market.

Barracuda serves 150,000 organizations worldwide, the company says.  

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