Campbell’s Barracuda Networks going private in $1.6 billion deal

Campbell information-technology firm Barracuda Networks will be sold for $1.6 billion to a major private equity company in a deal that will take Barracuda out of the stock market.

“Barracuda will operate as a privately-held company with a continued focus on email security and management, network and application security, and data-protection solutions,” Barracuda said in a press release Nov. 27.

“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.”

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Paying all cash for Barracuda is Chicago PE firm Thoma Bravo, which emphasized cybersecurity in a statement.

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

“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.”

Thoma Bravo will pay $27.55 for each share of Barracuda common stock.

“This price exceeds Barracuda’s 52-week high and represents a premium of 22.5 percent to the Company’s 10-day average stock price prior to Nov. 27, 2017, of $22.49,” Barracuda said.

Founded in 2003, Barracuda went public on the New York Stock Exchange in late 2013. Its stock price reached a high of $45 in 2015 and a low of $10 last year, VentureBeat reported Nov. 27.

The company brought in $94.3 million in revenue in its most recent quarter, up 7 percent from $87.9 billion in the same quarter in 2016, it reported to the Securities and Exchange Commission.

Barracuda has more than 1,000 employees and its clients include CitiBank, Coca-Cola, FedEx and IBM, it said.

Barracuda said its board unanimously approved the sale, and that the deal would close by the end of February.

 

Photo: A school of barracuda (Pixabay)

 

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