Private equity firm Thoma Bravo LLC agreed to acquire U.K-based Sophos Group PLC for approximately $3.82 billion.
Under the terms of the deal, each shareholder of the cybersecurity firm will receive $7.40 in cash for each share, a premium of 37.1% to the company's closing price Oct. 11.
Thoma Bravo will finance the deal through a combination of equity to be invested by funds managed and/or advised by the firm and debt to be provided under an Interim Facilities Agreement arranged by Goldman Sachs Bank USA.
The deal is expected to be complete during the first quarter of 2020, subject to receipt of the relevant competition clearances and regulatory approvals.
The acquisition will offer greater exposure to the growing cybersecurity market for Thoma Bravo, which last year acquired a minority stake in Sophos' peer, McAfee LLC.
J.P. Morgan Cazenove, Lazard and UBS AG London Branch served as financial advisers to Sophos, while Slaughter and May was the firm's legal adviser. Kirkland & Ellis were legal adviser to Thoma Bravo and Goldman Sachs was its financial advisers.