Thoma Bravo LP has made a preliminary approach to Darktrace (LON: DARK) concerning a possible cash bid. Discussions are at an early stage.
Cambridge-based Darktrace provides artificial intelligence (AI)-based cybersecurity services, and it was formed in 2013. The AI technology can detect and stop cyber attacks. There could be other uses for the AI technology both within cyber security and in other areas. The technology uses machine learning to identify cyber threats.
Darktrace obtained a premium listing on 4 May 2021 when it raised £143.4m at 250p a share, valuing the company at £1.72bn. In September last year the share price was nearly four times the original placing price. More recently it fell below 300p before recovering to 414.8p, which values Darktrace at £2.94bn.
A fourth quarter trading statement revealed that year-on-year customer numbers were nearly one-third higher, and revenues were 48% ahead. A 2021-22 pre-tax profit of $32.3m is forecast. The full figures are due to be published on 8 September.
The 2021-22 estimated multiple is more than one hundred times earnings. A decline in pre-tax profit to $24.3m is expected for 2022-23, even though revenues are forecast to grow by 30%.
Net cash is estimated to be $350m and it is expected to increase to more than $400m by June 2023.
The top ten shareholders own around two-thirds of Darktrace. That could make it easier to agree a suitable bid.
Private equity firm Thoma Bravo is an investor in a wide range of software companies, including Kofax Inc which was successful with a 55p a share cash bid for AIM-quoted electronic invoicing company Tungsten Corporation.
At the end of March 2022, Thoma Bravo had more than $114bn of assets under management.