Highlights:

  • Denver-based Ping Identity, which went public three years ago, is being acquired by Thoma Bravo at a premium price of USD 28.50 per share in cash.
  • Latest acquisitions in the market point that a “tectonic shift” is underway in intelligent identity solutions for the enterprise.

Thoma Bravo, the private equity and growth capital firm, recently announced that it had agreed to buy Ping Identity, an identity solutions company that has been acquiring smaller cybersecurity startups over the past two years, in a cash deal valued at USD 2.8 billion.

It’s Thoma Bravo’s most recent multibillion-dollar cybersecurity megadeal. In April, the privately held giant revealed that it would acquire SailPoint, another publicly traded cybersecurity firm, for USD 6.9 billion. It announced in 2021 that it would pay USD 12.3 billion to acquire email security company Proofpoint.

Denver-based Ping Identity, which went public three years ago, is being acquired by Thoma Bravo at a premium price of USD 28.50 per share in cash. The Ping Identity board has already unanimously approved the deal, and it is anticipated to close in the fourth quarter of 2022. The deal has also been approved by Vista Equity Partners, which holds close to 10% of the issued and existing shares of Ping Identity.

In a statement, the CEO and founder of Ping Identity, Andre Durand, called the acquisition “compelling” and thanked his team, clients, and partners for ultimately making it happen.

“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,” he said.

“We are pleased to partner with Thoma Bravo, which has a strong track record of investing in high-growth cloud software security businesses and supporting companies with initiatives to turbocharge innovation and open new markets.”

Seth Boro, a managing partner at Thoma Bravo, said a “tectonic shift” is underway in intelligent identity solutions for the enterprise.

“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. We are highly impressed with the talented Ping Identity team and look forward to working collaboratively in the years to come.”

Chip Virnig, a partner at Thoma Bravo, said Ping Identity is “well-positioned to capitalize on the significant opportunities in the USD 50 billion Enterprise Identity security solutions area.”

Ping employed around 1,400 people as of this past spring. Established in 2002, the firm has been publicly traded since 2019 and reported sales of USD 299.4 million in 2018, up from USD 243.5 million in 2020.

Durand indicated in an interview that his company would take a break after engaging in a mini-acquisition binge that saw it purchase four businesses in 2020 and 2021. When questioned about when Ping Identity would be acquired, Durand replied that it was feasible, depending on numerous market circumstances.

“You tend to see consolidation occur kind of on the tail end of more mature markets,” he said. “You do see it – a certain market emerges, there’s a whole lot of players, and they do get out for a period of time. Then the market kind of reaches its climax, and then there tends to be a lot of consolidation.”

He added: “At some point, you don’t always control what you just described. Bigger players come along, and they want to play in that space, and, you know, at some level, every company always has to respond to anything that comes at it. We have a responsibility to do that for existing shareholders. But I see more companies now paying attention to identity than I’ve seen in some time. I think a lot of players recognize it’s the foundation of security.”