Barracuda to be acquired by investment firm for $1.6 billion

Security and data protection provider Barracuda Networks, Inc. has announced that it will be acquired by private equity investment firm Thoma Bravo LLC for $1.6 billion USD in cash.

The proposed deal is expected to close before Barracuda’s fiscal year end of Feb. 28, 2018, although it is subject to shareholder and regulatory authority approval. Once finalized, Barracuda will operate as a privately-held company that will focus on email security and management, network and application security, and data protection solutions for use in both cloud and hybrid environments, according to a Nov. 27 company press release.

Barracuda’s Board of Directors unanimously approved the agreement, believing the transaction maximizes shareholder value, the release continues. Barracuda shareholders will receive $27.55 for every share of stock they hold, which exceeds the company’s 52-weel high and “represents a premium of 22.5 per cent to the company’s 10-day average stock price prior to Nov. 27, 2017, of $22.49,” it says.

“We believe the proposed transaction offers an opportunity for us to accelerate our growth with our industry-leading security platform that’s purpose-built for highly distributed, diverse cloud and hybrid environments,” BJ Jenkins, CEO of Barracuda, says in the release. “We will continue Barracuda’s tradition of delivering easy-to-use, full-featured solutions that can be deployed in the way that makes sense for our customers.”

Jenkins goes on to explain that Thoma Bravo has an excellent history of investing in growing security businesses.

“This transaction speaks to the value and strength of Barracuda’s security platform, which helps customers protect and manage their networks, applications, and data. I expect that our employees, customers, and partners will benefit from this partnership,” he adds.

Seth Boro, a managing partner at Thoma Bravo, calls Barracuda “a proven industry leader, consistently bringing powerful, comprehensive solutions to customers in an increasingly prevalent, hostile, and complex threat environment.”

“We believe that Barracuda is at the forefront of innovation in several highly strategic areas of the cybersecurity market and are excited to be the company’s partner in the next phase of its growth,” he concludes.

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Mandy Kovacs
Mandy Kovacs
Mandy is a lineup editor at CTV News. A former staffer at IT World Canada, she's now contributing as a part-time podcast host on Hashtag Trending. She is a Carleton University journalism graduate with extensive experience in the B2B market. When not writing about tech, you can find her active on Twitter following political news and sports, and preparing for her future as a cat lady.

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