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UPDATE 3-Thoma Bravo to take cybersecurity firm Proofpoint private in $12.3 bln deal

(Adds deal details, updates shares)

April 26 (Reuters) - Private equity firm Thoma Bravo said on Monday it would buy Proofpoint Inc in an all-cash deal that valued the cybersecurity firm at about $12.3 billion, at a time when remote working due to the pandemic has fueled a surge in demand for network security.

Interest in cybersecurity firms has soared as more businesses turn to the cloud to run their operations and frequent cyberattacks. Cybersecurity industry funding reached an all-time high of $11.4 billion last year, a nearly 50% increase from 2018, according to CB Insights.

The deal, expected to close in the third quarter, will fetch Proofpoint shareholders $176 per share held, indicating a premium of about 34% to the stock’s last close. The company’s shares rose 30% in late afternoon trading on Monday.

The deal has an equity value of $10.1 billion based on shares outstanding, according to Reuters calculations. On a fully diluted basis, Proofpoint is valued at $12.3 billion, the companies said, based on the conversion of the company’s convertible notes into equity.

Thoma Bravo, which is largely focused on software and technology companies, has been doubling down on its investments in the sector. It acquired online trading services provider Calypso Technology and data solutions firm Talend in March.

Sunnyvale, California-based Proofpoint also reported first-quarter earnings on Monday, topping Wall Street estimates for revenue and profit per share.

However, the company has canceled its earnings call scheduled for April 29 due to the deal.

Reporting by Eva Mathews in Bengaluru; Editing by Sriraj Kalluvila

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