Private equity types buy IAM Sailpoint for $6.9 billion


A $6.9 billion acquisition puts a hard number on the value of identity and access management (IAM).

The nearly $7 billion purchase was made by technology private equity firm Thoma Bravo for Texas-based enterprise IAM firm SailPoint, whose software portfolio includes AI-powered products designed to detect irregularities that could signal an intrusion.

IAM software adds an extra layer of security over traditional passwords and multi-factor authentication. The key is to limit access to network resources and provide access only to employees who need it, and only when needed.

Software like SailPoint’s determines what kind of behavior is suspicious, eliminating the need for IT to spend time resetting passwords and granting granular access to networks.

Thoma Bravo is no stranger to the cybersecurity game. Investors led SailPoint’s first fundraising in 2014 and also have current investments in McAfee, Sophos, Barracuda and more. Thoma Bravo acquired Proofpoint in 2021 for $12.3 billion and took it private, a strategy that will be repeated with SailPoint.

If the sale is completed, it will likely be in the second half of 2022, Thoma Bravo said. Upon closing, SailPoint will be considered a private company and will not be listed on any public stock exchange. Shareholders will receive $65.25 per share, which Thoma Bravo said represents “a 48% premium to SailPoint’s 90-day volume-weighted average price.”

Since today’s announcement, SailPoint stock has risen almost 30% in premarket trading and may soon break above the price of $65.25.

Identity and access management is notoriously difficult to implement, requiring visibility into every element of a network, connectivity to every business application, and a well-trained team capable of managing it.

As more and more companies settle into the reality that remote work isn’t going away despite the decline of the COVID-19 pandemic, IAM will become increasingly important, as seen by the CEO and SailPoint founder, Mark McClain.

“Identity security is at the heart of cybersecurity and enterprises have realized that to fuel business growth and success, they must start with identity as the foundation for secure business transformation,” McClain said.

Recently published research predicts that the IAM market will reach $10.05 billion by 2026, growing at a compound annual growth rate of 16.67%. ®

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