Everbridgea critical incident management (CEM) software company, goes private in a $1.8 billion cash deal to be acquired by private equity giant Thoma Bravo — 20% more than it was was originally announced last month.*
Founded in 2002 originally as 3N Global, Everbridge helps governments and businesses across the industrial spectrum respond to emergencies — this includes risk intelligence to help assess the threat landscape around where workers live or travel, as and mass notification tools to effectively communicate critical messages during severe weather or terrorist attacks.
Everbridge listed on the Nasdaq in 2016, with its shares hitting an all-time high in September 2021 — the company reached a market capitalization of $6.4 billion, but that fell by more than two-thirds in four months. Things never recovered, with its valuation hovering below the $1 billion mark for the past six months.
Image Credits: Eventbridge
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Thoma Bravo, a private equity firm known for buying underperforming business software companies, is effectively paying a premium of more than 83%* for Everbridge’s capitalization on Feb. 2, the last day of trading before Thoma Bravo made a bid. Looking at the stock’s weighted average price (VWAP) over the previous three months, the deal represents a 62% premium, with shareholders netting $35.00 per share — $6.40 more than originally announced.*
At a time when geopolitical instability is expected to increase due to in the number of elections heldalongside existing threats related to climate change and economic headwinds, Thoma Bravo clearly sees Everbridge’s suite of SaaS tools as integral to companies looking to manage these risks.
“We look forward to working with Everbridge to expand their ability to capture opportunities in an expanding market for risk, compliance and security solutions,” said Thoma Bravo partner Hudson Smith. Press release. “The Everbridge product portfolio is already used by some of the world’s most trusted companies and organizations for comprehensive risk monitoring and critical event management, and we see an extensive runway for product innovation and profitable growth.”
The transaction is still subject to certain regulatory and shareholder approvals, but the company said it expects to close the deal in the second quarter of 2024.
*This article was updated on 1 March 2024, with modified purchase price and premiums since Everbridge’s ‘go shop’ process showed more interest.
