Shares of SonicWall, a Sunnyvale maker of Internet security technology, soared today after the company announced it would be bought for $717 million by investors led by Thoma Bravo, a private equity firm with offices in Chicago and San Francisco.
If shareholders and regulators approve the deal, SonicWall’s current stock owners would receive $11.50 a share in cash. SonicWall shares closed today at $11.28, up $2.29, or 25.5 percent.
“Our agreement with Thoma Bravo represents an attractive valuation for our shareholders, and we look forward to closing the transaction as quickly as possible,” SonicWall CEO Matthew Medeiros said in a statement announcing the deal.
The buyers group also includes the Ontario Teachers’ Pension Plan.
According to its website, Thoma Bravo tries to add to a company’s value with a “buy and build” strategy that includes “strategic use of acquisitions to accelerate earnings growth.”
“We look forward to working with SonicWall to accelerate the company’s organic growth strategy and to pursue a consolidation strategy in the network security market as well as adjacent markets,” Robert Sayle, a vice president at Thoma Bravo, said in a statement announcing the deal.
SonicWall expects the deal to close by the end of the year.
Contact Frank Russell at 408-920-5876. Follow him at Twitter.com/mercspike.
