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What Next for Imperva?

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Updated

Go-shop window closed

Imperva (IMPV) now looks to be firmly on track to be acquired by Thoma Bravo after its go-shop window closed. On October 10, Imperva announced an agreement that involved investment company Thoma Bravo acquiring it for $55.75 per share in cash or $2.1 billion in total. The agreement provided a 45-day window for Imperva to consider alternative acquisition proposals that may come its way.

During the go-shop period, Imperva received as many as 49 alternative acquisition proposals, but none were good enough to cause the company to abandon the offer from Thoma Bravo.

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Imperva on the path to going private

Imperva’s board unanimously approved the agreement with Thoma Bravo, saying the transaction would maximize its shareholder value. Imperva now expects its acquisition by Thoma Bravo to close in the first quarter of 2019. Upon completing the transaction, Imperva will operate as a privately held company.

Imperva generated revenue of $91.6 million in the third quarter, representing an increase of 9.0% YoY (year-over-year). The company made a profit of $1.1 million in the quarter compared to -$0.4 million a year earlier.

Thoma Bravo buying security companies

Fortinet (FTNT), FireEye (FEYE), and Check Point Software (CHKP) grew their third-quarter revenues 21.3%, 7.2%, and 3.6%, respectively, YoY. Revenue dropped 5.2% at Symantec (SYMC) and 6.2% at Juniper Networks (JNPR) in the third quarter.

In addition to Imperva, Thoma Bravo has agreed to purchase Broadcom’s (AVGO) cybersecurity business, Veracode, for $950 million. Thoma Bravo has also reportedly showed interest in acquiring cybersecurity company Symantec.

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