decor decor
"Our favorite holding period is forever."

-Warren Buffet

Thoma Bravo to Acquire Barracuda Networks for $1.6B

Financial Information*
  • Enterprise Value                                                     ~$1.6B
  • EV/LTM Revenue                                                      3.7x
  • EV/LTM EBITDA                                                       42.0x
Transaction Facts
  • Barracuda Networks (NYSE:CUDA) today announced that it has entered into an agreement to be acquired by private equity firm Thoma Bravo in an all-cash transaction valued at $1.6B. The deal is expected to close by the end of February.
  • Barracuda shareholders will receive $27.55 per share in cash, which represents a premium of 16.3 percent to Barracuda’s Friday close and a 22.5 percent premium over the company’s 10-day average stock price.
  • Shares of Barracuda rose 16 percent today in light of the announcement.
From Public Eye to Private Equity 
  • In-Demand Services: Founded in 2003, Barracuda raised at least $46M in funding before it went public 10 years later in 2013. Providing appliance, virtual appliance, cloud and hybrid deployment configurations to ~150,000 clients, the company has focused on delivering subscription-based security and data protection solutions. 
  • Harder Playing Field: As the demand for cloud has risen, competition has simultaneously increased. Barracuda is competing with the likes of Palo Alto Networks and Symantec, both of which have notable scale and specialization. Symantec, in particular, has developed a strong taste for M&A, acquiring Blue Coat Systems for $4.65B and LifeLock for $2.3B in 2016. Meanwhile, Barracuda has not been able to replicate the highs of 2015 — where shares hit their peak at $45.88 — in recent quarters. However, Barracuda’s cybersecurity portfolio made the company an attractive acquisition target for Thoma Bravo. Ultimately, going private may give Barracuda the resources it needs to grow, and the PE exit strategy has become more common as of late.
  • Behind the Scenes: Thoma Bravo, which manages private equity and debt funds representing more than $17B of capital commitments, has become more aggressive and expansive in its pursuit of software companies. In August 2016, the private equity firm completed the acquisition of visual analytics company Qlik. A year prior, in November 2015, the company sold solution provider Sirius Computer Solutions to Kelso & Co. Earlier that year in April, Thoma Bravo acquired application performance infrastructure company Riverbed, and sold Blue Coat Systems a month later (Thoma Bravo had previously acquired the firm in February 2012).
For more information about this transaction, click here to read the press release.
*Financial Information from S&P Capital IQ. 
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

24 Jan 2022

Tailwind Capital Sells AST Corp. to Recognize Partners

Financial Information ($USD) Not Disclosed  Transaction Details Tailwind Capital today announced it has completed its sale of AST Corporation to Recognize Partners, a technology services focused investment platform. Financial information was not disclosed. AST, a leading cloud and digital transformation solutions provider, simultaneously announced the deal, categorizing it as a strategic investment by Recognize to enable AST to accelerate investment in innovation,...

03 Jan 2022

Office Depot Sells CompuCom Systems

 Financial Information ($USD) Transaction Value: ~ $305 million Enterprise Value: $1.72 billion EV/LTM Revenue: 0.19x EV/LTM EBITDA: 3.85x  Transaction Details The ODP Corporation (NASDAQ: ODP) announced that it has sold its CompuCom Systems subsidiary to an affiliate of Variant Equity in a transaction valued up to $305 million. The transaction consideration of up to $305 million consists...

29 Dec 2021

Happy Holidays – The 2021 martinwolf Annual Letter

Dear Clients, Partners, and Friends of martinwolf M&A Advisors,   I hope you all are having an enjoyable holiday season with family and friends.   It’s been my tradition in this annual end-of-year letter to spend time reflecting on the past year, and to look forward to what the next year holds for us. We have plenty...