- Stock hits five-month high after discussions with Thoma Bravo
- Private equity firm been hovering up cybersecurity businesses
- Darktrace shares down from near-£10 levels since October 2021
Retail investors are getting excited after UK cybersecurity company Darktrace (DARK) revealed early talks with private equity firm Thoma Bravo about a possible buyout.
The company said that it has received ‘a number of preliminary and conditional proposals,’ and that the discussions with the private equity firm are for a cash offer. At what price is what investors want to know.
Today’s news saw shares in Cambridge-based Darktrace jump 20% to 497p, a five-month high. The stock hit a peak 945p late in 2021, and investors will hope to get closer to that than the current level.
WHY A TAKEOVER MAY BE ATTRACTIVE
Analysts see the sense in a tie-up with Thoma Bravo given its recent deal activity in the cybersecurity space. Earlier this month it struck a deal to buy US-listed Ping Identity for $2.4 billion, its 27th cybersecurity business that also includes former UK FTSE 250 firm Sophos, plus names like McAfee, Proofpoint and Barracuda.
Earlier this year, analysts at investment bank Berenberg slapped a £10 price target on Darktrace, although that has been massaged down to 600p given the stiff headwinds this year for growth stocks.
Darktrace has issued a stream of positive trading updates and guidance increases this year, yet the share price has remained stubbornly anchored at a range hovering around the 400p mark.
Thoma Bravo has until 12 September to either make a firm offer for Darktrace, or say it is walking away.
Shares told readers to buy Darktrace shares in April, at 375.13p.
