In a to-be-private acquisition worth $1.8 billion, renowned critical event management (CEM) software company Everbridge is set to be acquired by private equity giant Thoma Bravo. This new deal surpasses the previously announced amount by an incredible 20%.
Born in 2002 as 3N Global, Everbridge aids governments and businesses spanning various industries in responding to emergency situations. This includes providing risk intelligence to evaluate the threat landscape of employee’s residences or travel destinations, as well as mass-notification tools for effectively communicating critical messages during severe weather or times of terrorism.
In 2016, Everbridge became a publicly traded company on Nasdaq, reaching its all-time high in September 2021 with a market capitalization of $6.4 billion. Unfortunately, within four months, this value plummeted by more than two-thirds. Since then, it has struggled to regain its former success, remaining below the $1 billion mark for the past six months.
As a private equity firm known for acquiring underperforming enterprise software companies, Thoma Bravo is now offering an impressive 83% premium for Everbridge’s market value on February 2. In comparison to the volume-weighted average share price (VWAP) over the last three months, this deal represents a whopping 62% premium, providing shareholders with a profit of $35.00 per share – $6.40 more than the initial announcement.
With the expectation of increasing geopolitical instability due to numerous upcoming elections, coupled with existing threats related to climate change and economic challenges, Thoma Bravo clearly recognizes the significance of Everbridge’s suite of Software-as-a-Service (SaaS) tools for companies wishing to manage these risks.
Thoma Bravo partner Hudson Smith stated in a press release, “We are excited to collaborate with Everbridge to enhance their ability to seize opportunities in a growing risk, compliance, and safety solutions market. The Everbridge product portfolio is already used by some of the world’s most prestigious corporations and organizations to comprehensively monitor risk and manage critical events. We see a significant potential for product innovation and sustainable growth.”
While the transaction is pending certain regulatory and shareholder approvals, Everbridge anticipates closing the deal in the second quarter of 2024.
*This article was revised on March 1, 2024, with updated acquisition price and premiums after the successful “go shop” process by Everbridge generated greater interest.
