Market Overview

Imperva Sold In $2.1B Go-Private Deal; Cybersecurity Stocks Trade Down

Imperva Sold In $2.1B Go-Private Deal; Cybersecurity Stocks Trade Down

Cybersecurity provider Imperva Inc (NASDAQ: IMPV) agreed Wednesday morning to sell itself to private equity firm Thoma Bravo for an approximate 30-percent premium.

What Happened

The deal prices Imperva at $55.75 per share; the stock closed at $43 Tuesday. The sale values Imperva at around $2.1 billion, but failed to offer support to other cybersecurity stocks. The group was trading lower Wednesday: 

  • Fortinet Inc (NASDAQ: FTNT): was down 4.87 percent at the time of publication. 
  • FireEye Inc (NASDAQ: FEYE): was down 2.52 percent.
  • Palo Alto Networks Inc (NYSE: PANW): was down 3.56 percent.
  • Cyberark Software Ltd (NASDAQ: CYBR): was down 3.14 percent.

Why It's Important

As a private entity, Imperva will be better-positioned to "focus on execution and drive to be a world-class profitable growth company," it said in a statement. The deal offers investors "immediate and substantial value," according to the cybersecurity company. 

What's Next

Imperva's technology will remain vital in protecting the overall digital economy at a time when software applications and data are "increasingly under cyberattack," Thoma Bravo partner Chip Virnig said in a statement.

The private equity firm's expertise and track record within the cybersecurity space "fits squarely" with the company's long-term objectives, according to the deal announcement. 

The transaction is expected to close in the fourth quarter of 2018 or earlier and includes a 45-day "go-shop" period where Imperva can actively explore and evaluate competing acquisition offers.

Related Links:

BTIG Downgrades Zscaler On Valuation, Says Company Is Redefining Cybersecurity Market

Cyberark Among The Few 'Reasonably Priced' Software Stocks, JPMorgan Says In Upgrade


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