Ping to Go Private in $2.8 Billion Deal

Ping Identity is going private. The company has agreed to an acquisition by Thoma Bravo, a software-focused private equity firm, that values Ping at $2.8 billion.

Thoma Bravo is offering $28.50 per share in the all-cash transaction, a premium of about 63 percent over Ping’s share price at the close of the previous trading day. The transaction has been unanimously approved by Ping’s Board of Directors; and Vista Equity Partners, which owns about 9.7 percent of Ping’s outstanding shares, has agreed to vote in favor of the deal.

The acquisition comes after Ping itself made a couple of strategic acquisitions last year. The company bought SecuredTouch, a behavioral biometrics specialist, in June; and went on to bring SecuredKey and its “no code” Identity and Access Management solution into its portfolio in September.

In a statement announcing the acquisition, Thoma Bravo Managing Partner Seth Boro asserted that “Ping Identity’s unique capabilities and strong position in enterprise identity security make it a great platform to deliver customer outcomes, expand into new use cases and support digital transformations.”

“Ping Identity is a leader in intelligent identity solutions for the enterprise and is well-positioned to capitalize on the significant opportunities in the $50 billion Enterprise Identity security solutions area,” added Thoma Bravo Partner Chip Virnig. “Our shared commitment to growth and innovation, combined with Thoma Bravo’s significant security software investing and operational expertise, will enable Ping Identity to accelerate its cloud transformation and delivery of industry leading identity security experiences for the customers, employees and partners of large enterprises worldwide.”

The acquisition was announced alongside Ping Identity’s results for the second quarter. Revenues came in at just over $72 million, compared to revenues of just under $79 million in the same quarter of 2021. Operating expenses, meanwhile, were up, contributing to an increased net loss – amounting to about $47.8 million for the quarter, compared to a net loss of just under $11 million a year ago.

Thoma Bravo’s acquisition of Ping Identity is expected to close in the fourth quarter, subject to customary closing conditions. Once the deal has closed, Ping Identity common stock will be removed from the New York Stock Exchange as the company will be privately held.

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Aug. 8, 2022 – by Alex Perala