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Ping Identity Holding Corp., a major provider of identity management software, today announced that it has agreed to be acquired by Thoma Bravo for $2.8 billion.

The all-cash transaction values Ping Identity at $28.5 per share. That represents a 63% premium to the Tuesday closing price of the company’s stock.

Denver-based Ping Identity provides software that enterprises use to process login requests to their applications, as well as perform related tasks. Ping Identity’s software makes it possible to limit user access to sensitive application features and detect malicious activity. The company also provides a tool that enables developers to provide a passwordless sign-in option for users. 

Ping Identity offers a number of more specialized tools alongside its core feature set. The company’s software can, among others, help organizations protect application programming interfaces from cyberattacks. Ping identity uses machine learning to detect hacking attempts targeting a company’s APIs and spot potentially insecure configuration settings. 

Ping Identity’s technology is widely used in the enterprise. The company’s customer base includes more than half of the Fortune 100, as well as hundreds of other large organizations.

“This compelling transaction is a testament to Ping Identity’s leading enterprise identity solutions, our talented team, and our outstanding customers and partners,” said Ping Identity Chief Executive Officer Andre Durand. “Identity security and frictionless user experiences have become essential in the digital-first economy and Ping Identity is better positioned than ever to capitalize on the growing demand from modern enterprises for robust security solutions.”

Ping Identity released its second quarter financial results in conjunction with today’s acquisition announcement. The company logged a net loss of $47.8 million on $72 million in revenue during the three months ended June 30. Ping Identity’s annualized recurring revenue reached $341 million, a 22% improvement over the same time a year ago.

Increased demand from large customers was one of the factors that contributed to the company’s sales growth in the quarter. According to Ping Identity, the number of organizations that spend more than $250,000 on its software annually increased 19% year-over-year, to 331.

“A tectonic shift is occurring in intelligent identity solutions for the enterprise,” said Thoma Bravo  managing partner Seth Boro. “Ping Identity’s unique capabilities and strong position in enterprise identity security make it a great platform to deliver customer outcomes, expand into new use cases and support digital transformations.”

Thoma Bravo expects to complete the acquisition in the fourth quarter pending customary closing conditions, including approval by Ping Identity shareholders. Vista Equity Partners, a major Ping Identity shareholder with an approximately 9.7% stake in the company, has already indicated that it plans to back the acquisition.

Ping Identity listed its shares on the NYSE in 2019 at a valuation of $1.16 billion. The company was taken public by Vista Equity Partners,  which had spent $600 million to acquire it in 2016. Ping Identity earlier raised more than $120 million in venture funding from investors.

Thoma Bravo is buying Ping Identity a few months after inking a $6.9 billion deal to acquire SailPoint Technologies Holdings Inc., which also provides software that helps enterprises manage user access to applications. Earlier, Thoma Bravo agreed to buy business planning provider Anaplan Inc. for $10.7 billion. 

Image: Ping Identity

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