Barracuda Networks’ share price rises on acquisition announcement
Online security company Barracuda Networks announced this week that it was being acquired by private equity giant Thomas Bravo, in a deal worth $1.6 billion. The company says that the acquisition should be completed by the end of February, at which point Barracuda will join other software security firms in Bravo’s portfolio, including Compuware and McAfee. Barracuda’s share price rose dramatically on the news, appreciating by over 16% on Monday.
Investors look forward to Barracuda acquisition
SOURCE: Yahoo Finance
B. J. Jenkins, the company’s chief executive officer, released a statement saying: “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. We will continue Barracuda’s tradition of delivering easy-to-use, full-featured solutions that can be deployed in the way that makes sense for our customers.”
Barracuda was founded in 2003, and has over 150,000 customers, including Boeing, Microsoft, and the U.S. Department of Defense. Its acquisition marks the latest in a spate of private equity software company purchases, including Thomas Bravo’s recent investment in SailPoint, which recently went public.
Seth Boro, a managing partner at Thomas Bravo, made the following comment: “Barracuda is a proven industry leader, consistently bringing powerful, comprehensive solutions to customers in an increasingly prevalent, hostile, and complex threat environment. 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.”
Dominion holds Barracuda Networks in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.