After a tough few months in the markets for Ping Identity, the enterprise identity management company has made a significant move: private equity firm Thoma Bravo is buying the company and taking it private for $2.8 billion.

A Mixed Quarter for Ping Identity

The news was announced at the same time that Ping posted its Q2 earnings. The company said it made revenues of $72 million for the quarter, missing analysts’ expectations. (It has cancelled its earnings call in light of the acquisition news.)

Ping is traded on the NYSE (it went public pre-pandemic) and Thoma Bravo will be paying $28.50 per share in an all-cash transaction, which is 63% over Ping Identity’s closing share price on August 2, 2022, the company said.

"This compelling transaction is a testament to Ping Identity’s leading enterprise identity solutions, our talented team, and our outstanding customers and partners," said Andre Durand, Ping Identity’s CEO, in a statement. "Identity security and frictionless user experiences have become essential in the digital-first economy and Ping Identity is better positioned than ever to capitalize on the growing demand from modern enterprises for robust security solutions. We are pleased to partner with Thoma Bravo, which has a strong track record of investing in high-growth cloud software security businesses and supporting companies with initiatives to turbocharge innovation and open new markets."

A Familiar Story for Ping Identity

This is actually the second time that Ping has bounced into the hands of a PE firm. Prior to going public, it was majority-owned by Vista Equity. Vista retained a share of the company, currently 9.7% of its outstanding shares.

Thoma Bravo has been one of the group of PE firms that has been aggressively scooping up tech companies in recent months capitalizing on the current climate. Companies that are targets have included those that have been struggling to make ends meet or those that have seen a significant decline in their valuation.

What Does This Mean for Ping Identity?

The deal, pending regulatory and other approvals, is expected to close in Q4. The board of Ping has unanimously approved the deal, the two firms said. The acquisition will likely give Thoma Bravo a foothold in the identity management space and potentially provide new opportunities for growth.

However, this move may also raise questions about the future direction of the company and whether it will continue to operate independently or be integrated into Thoma Bravo’s existing portfolio of companies.

A Busy Time for Identity Management

The acquisition comes at a time when identity management is becoming increasingly important for enterprises. With the rise of cloud computing, mobile devices, and IoT devices, there is a growing need for robust security solutions that can protect against cyber threats.

Ping Identity has been a leader in this space for some time, providing a range of products and services that help organizations manage user identities and access to their systems and data.

The Full Statement from Ping Identity

"We are pleased to announce that Thoma Bravo will be acquiring Ping Identity," said Andre Durand, CEO of Ping Identity. "This transaction reflects the strong value that our company has created for our customers and partners over the years. We believe that this partnership with Thoma Bravo will enable us to continue to innovate and deliver solutions that meet the evolving needs of modern enterprises."

The Reaction from Analysts

While some analysts have welcomed the deal, others have expressed concerns about the impact it may have on Ping Identity’s future direction.

"The acquisition of Ping Identity by Thoma Bravo is a positive development for the company," said analyst John Stewart. "However, we will be closely watching to see how this deal affects Ping’s ability to innovate and deliver solutions to its customers."

The Deal in Context

The $2.8 billion acquisition price represents a significant premium for Ping Identity, which has struggled in recent months. However, it also reflects the growing demand for identity management solutions and the increasing importance of robust security measures for modern enterprises.

As the deal is expected to close in Q4, we will be closely watching to see how Thoma Bravo plans to integrate Ping Identity into its existing portfolio of companies and whether this move will have any significant impact on the identity management space.