US private equity firm Thoma Bravo said it did not intend to make a takeover offer for cybersecurity firm Darktrace Plc, after failing to agree on terms of the deal.
(Bloomberg) — US private equity firm Thoma Bravo said it did not intend to make a takeover offer for cybersecurity firm Darktrace Plc, after failing to agree on terms of the deal.
Darktrace revealed it was in early discussions with Thoma Bravo about a possible takeover last month. In a statement Thursday, the UK firm said early-stage discussions took place “but an agreement could not be reached on the terms of a firm offer.”
Thoma Bravo said it still reserved the option to make a bid under certain circumstances over the next six months, in a separate statement.
Founded in 2013 by mathematicians and cyber defense experts, Darktrace uses artificial intelligence to check for hacks and suspicious data leaks. Its founding investor was Invoke Capital Partners, an investment firm created by embattled British entrepreneur Mike Lynch.
Any possible takeover talks would’ve likely involved questions about Darktrace’s historic links to Lynch, the former Autonomy Corp. founder who’s fighting criminal fraud charges related to the sale of that company to Hewlett-Packard in 2011. Lynch formed Invoke following the Autonomy sale.
Read more: Lynch’s Legal Woes Barely Dent Loyalists’ $1.7 Billion Fortune
Darktrace warned about potential risks arising from Lynch’s legal battles in the prospectus released ahead of its initial public offering last year. The stock has been volatile in 2022, reaching a high of 511.5 pence in March before tumbling to 287.6 pence in July.
Darktrace also reported revenue for the full year on Thursday that met the average analyst estimate., in a separate statement.
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