Mimecast Agrees to Permira Takeover in $5.8 Billion Deal

(Bloomberg) -- Permira Advisers has agreed to buy Mimecast Ltd. in a $5.8 billion all-cash deal, marking the second major cyber security purchase by the private equity firm in a month.

Permira has offered $80 a share, which represents a premium of about 16% to Mimecast’s unaffected closing stock price on Oct. 27, the last full trading day prior to a Wall Street Journal report disclosing details regarding the company’s strategic review process, according to a statement Tuesday. 

Private equity firms have been chasing cyber security deals after the sector has seen a surge in the demand for its services. A steady wave of high-profile hacks, combined with many employees working remotely, has led to a bout of dealmaking.

An investor group led by buyout firms Advent International Corp., Permira and others agreed last month to take cybersecurity software maker McAfee Corp. private in a $14 billion deal including debt.

In August NortonLifeLock Inc. agreed to buy Avast Plc in a deal valued at as much as $8.6 billion, while earlier this year Thoma Bravo, the software-focused buyout firm, agreed to acquire cybersecurity and compliance firm Proofpoint Inc. in a $12.3 billion deal.

Based in Lexington, Massachusetts and with about 1,765 employees, Mimecast provides cloud security and risk management services, focusing primarily on email protection. Its shareprice has risen 32% this year.

The deal is expected to close in the first half of 2022. The deal also includes a 30-day “go-shop” period, where the firm and its advisers will look for rival deals. 

Citigroup Inc. is financial adviser to Mimecast, and Qatalyst Partners is acting as lead financial adviser to Permira. Blackstone and Ares Management Corporation are providing committed debt financing to Permira.

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