Mimecast And Permira Close $5.8B Purchase Deal

Email security firm Mimecast Limited has been acquired by global equity firm Permira for approximately $5.8 billion, or $80 per share, in an all-cash deal, the company said on Thursday. 

The closing occurred roughly five months after the December 2021 purchase announcement. Mimecast ceased trading its stock and is no longer listed on a public market.

Mimecast, which was founded in 2003, reported revenue of $501.4 million for its fiscal 2021, which ended in the spring -- a 17% increase over the prior year. Its Q1 2022 revenue totaled $142.5 million, a 24% hike YoY. 

The sale share price represents a premium of roughly 16% over Mimecast’s closing stock price on October 27, 2021, the company said in December.

Mimecast hopes to scale its services. 

“With Permira’s resources, network and deep experience scaling global technology companies, we will be better positioned than ever to deliver the innovations that our customers and the world need,” states Peter Bauer, chairman and chief executive officer of Mimecast.

“Email is the leading vector for cyberattacks, and phishing and impersonation attempts are continually evolving,” Permira Partners Michail Zekkos and Ryan Lanpher stated in December. “This means there has never been more urgency or need for organizations to protect their critical data and infrastructure.”

Citi was financial advisor to Mimecast, and Goodwin Procter LLP served as legal counsel. Qatalyst Partners acted as lead financial advisor to Permira, with BofA Securities, J.P. Morgan Securities LLC and RBC Capital Markets, LLC also serving as financial advisors.

In addition, Blackstone Credit and funds managed by Ares Management Corporation’s Credit Group provided debt financing to the Permira funds. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Permira.


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