Everbridge, a critical event management (CEM) software company, will be taken private and acquired by private equity giant Thoma Bravo in a $1.8 billion all-cash deal. This is 20% more than the amount originally announced last month.*
Founded in 2002 as 3N Global, Everbridge helps governments and businesses across all industries respond to emergencies. This includes risk intelligence to help assess the threat landscape where employees live and travel, and mass notification tools to communicate effectively. Important messages during bad weather or terrorist attacks.
Everbridge listed on the Nasdaq in 2016, and the stock hit an all-time high in September 2021. The company's market capitalization reached $6.4 billion, but within four months it had fallen by more than two-thirds. The situation has not improved, and its valuation has remained below $1 billion for the past six months.
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Thoma Bravo, a private equity firm known for acquiring underperforming enterprise software companies, is effectively paying a premium of more than 83%.* About Everbridge's market capitalization on February 2nd, the last day of trading before Thomas Bravo makes his bid. Looking at the volume-weighted average price (VWAP) over the past three months, this deal represents a 62% premium, giving the shareholder a profit of $35.00 per share, which was originally announced. That's $6.40 more than the original amount.*
In addition to existing threats related to climate change and economic headwinds, Thomas Bravo believes that Everbridge's suite of SaaS tools can help address these risks, with geopolitical instability expected to increase due to the number of elections. We clearly see it as essential for businesses seeking control.
“We look forward to working with Everbridge to expand our ability to take advantage of opportunities in the expanding market for risk, compliance and safety solutions,” Hudson Smith, partner at Thoma Bravo, said in a press release. . “Everbridge's product portfolio is already used by some of the world's most respected companies and organizations to comprehensively monitor risk and manage critical events, and to support product innovation and We continue to see a broad runway for profitable growth.”
The deal still requires certain regulatory and shareholder approvals, but the company said it expects to close in the second quarter of 2024.
*This article was updated on March 1, 2024 to revise the acquisition price and premium following Everbridge's “go-shop” process, which generated greater interest..