Absolute Software Corp., a publicly traded cybersecurity provider, today announced that it has agreed to be taken private by Crosspoint Capital Partners in a $657 million deal.
Crosspoint is also absorbing the company’s $223 million debt. The acquisition values Absolute Software at $11.5 per share, a 34% premium to its Wednesday closing price. The deal comes less than three years after the company went public on the Nasdaq at $11 per share.
Vancouver-based Absolute Software sells a platform that helps organizations detect vulnerable and malicious devices in their corporate networks. According to the company, its platform can automatically map out all the employee devices in a network. It also collects hundreds of data points about each device.
Using Absolute Software’s platform, administrators can find devices that lack an antivirus program or have misconfigured data encryption settings. It’s also possible to search for breach indicators. The platform can point out anomalous device usage patterns that may point to the presence of malware.
If administrators detect an endpoint that doesn’t meet cybersecurity requirements, they can remotely freeze it and delete the onboard data. Some types of malware attempt to avoid such situations by disabling a device’s breach prevention software. To address that risk, Absolute Software’s platform automatically reinstalls itself when it detects signs of tampering.
The endpoint security segment is one of several markets where Absolute Software maintains a presence. It also offers a tool that administrators can use to remotely fix malfunctioning programs on employee devices. Additionally, the company provides software that allows employees to securely log into work applications via encrypted connections.
The company generated $57.2 million in revenue during its fiscal second quarter, which ended Dec. 31. That represents a 17% increase compared with the same time a year earlier. Absolute Software also reported a $7 million net loss for the quarter.
Crosspoint, the private equity firm that is acquiring the company, focuses on making investments in the enterprise software market. It previously teamed up with another private equity firm to buy Forescout Technologies Inc. for $1.9 billion. Crosspoint was also part of the investor consortium that acquired McAfee Corp. for about $14 billion in 2021.
“For the past five years, our focus has been on creating the industry’s only truly self-healing security platform centered on resilience,” said Absolute Software Chief Executive Officer Christy Wyatt. “By partnering with Crosspoint, a proven cybersecurity investor with a track record in building growth companies, we are delivering immediate cash value to our shareholders.”
Absolute Software shareholders will vote on the acquisition at a special meeting scheduled to take place in late June. The company expects to complete the transaction by year’s end.
Image: Absolute Software
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