KnowBe4 Inc KNBE.O, a cybersecurity company, announced on Monday that Vista Equity Partners had made an offer to buy it out for $4.22 billion in cash. This is the most recent indication of private equity interest in a sector whose valuations have fallen during the slump this year.
The $24 per share offer reflects a price increase of about 39% above KnowBe4’s closing price on September 16. As of the most recent closing, its shares had almost lost a quarter of their value this year.
This year, private equity firms have profited from the decline in the value of technology businesses brought on by concerns about increasing interest rates and a slowing economy. Additionally, the growth of hybrid work has attracted investors to cybersecurity companies.
On its platform, KnowBe4 offers security awareness training that includes simulated phishing assaults. According to Cowen analysts, the company’s concentration on an expanding “must have” area from an enterprise viewpoint makes it appealing.
KnowBe4, whose shares increased by 25% early on Monday, announced that a special committee had been assembled to examine the offer.
The Austin, Texas-based firm has made a number of sizable investments this year, including the proposal from Vista. According to investment tracker Tracxn, the company has so far completed 21 agreements, including the $16.5 billion acquisition of cloud services provider Citrix Systems in January.
