Vancouver’s Absolute Software (TSX,Nasdaq:ABST) is being acquired by an American private equity firm for $1.2 billion.
Absolute Software, a computer security company that developed anti-theft software for laptops and other anti-cyber crime safeguards, will be acquired by Crosspoint Capital Partner, L.P. for US$870 million.
Absolute Software shareholders will receive US$11.50 per common share. That is a 34 per cent to 38 per cent premium on Absolute’s closing price and 30-day volume-weighted average price.
While the acquisition was approved unanimously by Absolute's board of directors, the sale will still need the approval of two-thirds of shareholders.
In 2021, it was Absolute that was doing the acquiring, when it bought Seattle’s NetMotion Software Inc. for $340 million.
Crosspoint is a private equity firm that specializes in computer security companies. It was part of an investor group that acquired McAfee Corp. in 2021 for US$14 billion.
“In the modern remote and hybrid work environment, maintaining device integrity and protection is more difficult than ever,” Greg Clark, managing partner of Crosspoint Capital Partners, said in a press release.
“We are impressed with how Absolute has built upon its asset visibility and control heritage and expanded into solutions that provide endpoint resilience and the reliable access needed in today’s hybrid work environments. We look forward to partnering with Christy and the Absolute team as they continue to deliver highly differentiated solutions to the market.”
“For the past five years, our focus has been on creating the industry’s only truly self-healing security platform centered on resilience,” Absolute CEO Christy Wyatt said in a press release.
“By partnering with Crosspoint, a proven cybersecurity investor with a track record in building growth companies, we are delivering immediate cash value to our shareholders, while positioning Absolute for an exciting future across all key stakeholders, including Absolute team members throughout the organization, our OEM partners and reseller network, and our more than 21,000 customers around the world.”