PFPT Stock Is Trading Higher On $12.3B Acquisition Proposal From Thoma Bravo, Upbeat Q1 Results

Private equity investment firm Thoma Bravo Advantage TBA inked an agreement to acquire cybersecurity and compliance company Proofpoint, Inc PFPT in an all-cash transaction valuing Proofpoint at $12.3 billion.
Proofpoint stockholders will receive $176 per share, signifying a 34% premium on Proofpoint's Apr. 23, 2021 closing price.
Proofpoint will become a private company with the flexibility and resources to continue providing cybersecurity and compliance solutions under the arrangement. Additionally, Proofpoint will benefit from the operating capabilities, capital support, and deep sector expertise of global software investor Thoma Bravo.
Thoma Bravo had consummated a $1 billion initial public offering (IPO) in January.
Separately, Proofpoint reported first-quarter FY21 revenue growth of 15% year-on-year to $287.8 million, exceeding the consensus estimate of $281.6 million. Subscription revenue rose 16.2% to $283.6 million, while Hardware and services revenue declined 26% to $4.2 million.
Billings rose 16% to 276.7 million. Non-GAAP gross profit rose 17.3% to $232 million with a 200-basis points margin expansion at 81%.
Non-GAAP operating income rose 50.4% to $38.2 million.
Non-GAAP EPS rose 29% to $0.49, beating analysts estimate of $0.4
Proofpoint held $882.6 million in cash and equivalents as of Mar. 31, 2021. It generated $95.1 million in operating cash flow.
The company had repurchased 209,000 shares at an average price of $124.87 in Q1.
Proofpoint canceled its earnings conference call due to the Thoma Bravo transaction. The company also suspended the financial guidance for the second quarter of 2021 and the full year 2021.
Price action: PFPT shares traded higher by 32% at $173.97 in the premarket session on the last check Monday.

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PFPT Stock Is Trading Higher On $12.3B Acquisition Proposal From Thoma Bravo, Upbeat Q1 Results

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