Thoma Bravo, a private equity giant, is set to acquire Everbridge, a critical event management (CEM) software company, in a significant all-cash deal worth $1.5 billion. This move marks a pivotal development in the enterprise software industry.
Key Takeaway
Thoma Bravo’s acquisition of Everbridge underscores the growing significance of critical event management solutions in addressing contemporary global challenges, signaling a new phase for Everbridge’s development and expansion.
Everbridge’s Role in Critical Event Management
Everbridge, originally founded as 3N Global in 2002, specializes in providing crucial support to governments and enterprises in responding to emergency situations. The company offers risk intelligence services to assess threats in areas where employees reside or travel, along with mass-notification tools for effective communication during severe weather conditions or security threats.
Transition from Public to Private
Having gone public on the NASDAQ in 2016, Everbridge experienced a surge in its shares, reaching a market cap of $6.4 billion in September 2021. However, the company’s valuation declined significantly thereafter, leading to its acquisition by Thoma Bravo.
Thoma Bravo’s Strategic Move
Thoma Bravo’s decision to acquire Everbridge at a premium exceeding 50% of its market cap demonstrates the private equity firm’s confidence in the potential of Everbridge’s suite of Software as a Service (SaaS) tools. This strategic move aligns with the increasing need for effective risk management solutions amidst geopolitical instability, climate change, and economic challenges.
Outlook and Expectations
Thoma Bravo’s partner, Hudson Smith, expressed optimism about the acquisition, emphasizing the potential for further innovation and growth in Everbridge’s product portfolio. The transaction is pending regulatory and shareholder approvals, with the anticipated completion in Q2 2024.
