Thoma Bravo inks $2.8 billion deal for authentication company Ping Identity

Private equity firm Thoma Bravo announced Wednesday a $2.8 billion all-cash deal to buy Denver-based authentication software company Ping Identity and take it private. 

Founded in 2002, Ping Identity’s software replaces traditional password authentication with technology that matches selfies to government issued IDs. Private equity firm Vista Equity Partners gained majority ownership of Ping in 2016 for $600 million and later took it public in September 2019. Currently, Vista Equity still owns close to 10% of the company’s shares. 

Ping Identity missed second quarter analyst estimates, falling several million short in revenue at $72 million. Despite Ping’s market drop, Thoma Bravo agreed to pay a 63% premium over Tuesday’s closing share price, and will be paying $28.50 per share. 

The deal is part of a trend of private equity firms buying out tech companies at a rapid rate, attracted by lower prices due to the toll of inflation and a slowing economy on tech giants.  

Thoma Bravo has previously invested in around 25 security companies including AppOmni, Grayshift, and Illumio. Just this year the firm has acquired the business management company Anaplan for $10.4 billion; financial technology company Bottomline for $2.6 billion; and SaaS-based identity and access management company Sailpoint for $6.9 billion.

Subject to customary closing conditions, the deal is expected to close in the fourth quarter of 2022 and the company will no longer be listed on the New York Stock exchange, according to the press release.