AI cybersecurity firm Darktrace deal tops European M&A in April

Thoma Bravo LP's agreed takeover of UK-based AI-driven cybersecurity company Darktrace PLC was the largest M&A deal in Europe in April, a month during which aggregate deal value declined across the continent, S&P Global Market Intelligence shows.

US private equity firm Thoma Bravo agreed to acquire the entire share capital of Darktrace from an investor group including KKR & Co. Inc. and Summit Partners LP for about €4.87 billion. The all-cash deal, whereby Darktrace shareholders will receive €7.23 in cash per share, represents a premium of 45.4% to the volume-weighted average share price for the three months to April 25.

While most rivals use so-called supervised AI, Darktrace uses unsupervised AI that sits inside a customer's computer systems and scrutinizes emails and internal networks for abnormal activity or vulnerabilities, CFO Cathy Graham told the Financial Times.

The deal would increase Thoma Bravo's exposure to the cybersecurity market, and in return Darktrace could benefit from a private ownership that could accelerate its cyber solutions development, the private equity firm said. The transaction is expected to close in the third or fourth quarter.

– View the deal profile page for the Darktrace transaction on S&P Capital IQ Pro. – Access M&A data using the Screener tool.

The aggregate transaction value of announced European M&A deals in April fell 13% month over month to €43.28 billion. Deal volumes increased to 937, from 922 in March.

Transactions targeting UK-based companies occupied five of the 10 largest deals in Europe.

Besides Darktrace, the others were EP Corporate Group a.s.' acquisition of logistics company International Distributions Services PLC for €4.77 billion; VINCI Airports SAS's binding agreement to purchase a 50.01% stake in Edinburgh Airport Ltd. from Global Infrastructure Management LLC for €1.49 billion; Singaporean real estate firm Mapletree Investments Pte. Ltd.'s acquisition of a student housing portfolio in the UK and Germany worth €1.17 billion; and Quanex Building Products Corp.'s agreement to acquire constructions company Tyman PLC from Teleios Capital Partners LLC for €1.11 billion.

Elsewhere, US-based Liberty Media Corp., through its motorsports business Formula One Group, agreed to acquire an 86% stake in Spanish sports management company Dorna Sports SL for €3.84 billion, making it the third-largest deal in April, while Luxembourg's SES SA agreed to acquire satellite communications services provider Reorganized ISA SA for €2.84 billion.