Mimecast Goes Private in $5.8 Billion Deal. The Stock Rises.

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Shares of Mimecast were jumping on Tuesday after the cyber security company announced that it was being acquired by private-equity firm Permira for $80 per share in cash, or $5.8 billion.

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Mimecast (ticker: MIME) rose 6.2% to $79.66.

London-based Mimecast was founded in 2003 and provides a suite of cloud services designed for cyber security.

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Mimecast is the latest in a series of cybersecurity companies caught by private-equity firms.

Permira, along with other private-equity investors, last month bought software security giant McAfee for more than $14 billion. McAfee previously sold its enterprise software arm to private-equity firm Symphony Technology Group for $4 billion in cash. Email security company Proofpoint was taken private in April by Thoma Bravo in a $12.3 billion full-cash deal.

“We have long admired Mimecast, its management team, and its talented employees,” said Michael Zekos and Ryan Lanfer, partners at Permira. “Email is the leading vector for cyber attacks, and phishing and impersonation attempts are constantly evolving. This means there has never been a greater urgency or need for organizations to protect their critical data and infrastructure.”

Permira has other technology stakes in its portfolio such as Informatica, a data integration software provider, and software platform FullStory. Beyond pure tech players, the firm previously backed a gene testing company, Lineage.

The acquisition of Mimecast is expected to close in the first half of 2022. This news comes after rumors of the company looking for sale. Thoma was one of the potential buyers cited by Bravo wall street journal, The stock jumped 9% on October 28, the day after the report.

Mimecast declined to comment on the deal in its second-quarter earnings release in November. The company reported revenue of $147.2 million, which beat Wall Street’s estimates. At that time JPMorgan raised its price target on the stock from $68 to $75.

Write to Karishma Vanjani at [email protected]

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