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Why Imprivata Inc. Is Soaring Today

By Brian Feroldi – Jul 13, 2016 at 12:07PM

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News that the company is being acquired by a private equity firm sent shares screaming higher.

Image source: Imprivata

What: Shares of Imprivata (NYSE: IMPR), an IT company primarily focused on security and identity management solutions for the healthcare sector, are on the move today. The company's stock was up about 31% as of 11:30 a.m. ET after news broke that the company is being acquired by a private-equity firm. 

So what: Imprivata issued a press release today stating that it has agreed to be acquired by Thoma Bravo LLC, a private-equity firm, for about $544 million in an all-cash deal. That values shares at $19.25 each, which represents a 33% premium over Tuesday's closing price.

Here's what Omar Hussain, Imprivata's president and CEO, had to say about the deal:

We're tremendously excited about Thoma Bravo's investment in our company and believe this transaction represents a great outcome for our current shareholders. Given Thoma Bravo's successful track record in both security and healthcare IT, today's partnership is an endorsement of Imprivata's corporate vision and our relentless focus on the customer experience -- a value which has established us as the vendor of choice in healthcare IT security.

Scott Crabill, a partner at Thoma Bravo, commented on his firm's rationale for buying Imprivata:

The need to combine strong, compliant security technology with ease of access in the healthcare industry is growing by the day. Imprivata is clearly positioned as the strongest vendor in this space and has a unique opportunity to continue to expand its market presence by providing additional high-value products to its customers.

Thoma Bravo currently has about $17 billion in assets under management, so it doesn't look like it will have any problems funding the deal.

Now what: Imprivata has been on the public markets for about two years now, and it has spent most of that time trailing the returns of the S&P 500. Today's pop did push it back into market-beating territory.

IMPR Chart

IMPR data by YCharts

A timeline for the closing was not announced, but with shares trading within a few pennies of the acquisition price, long-term investors might want to take a victory-lap by selling their shares today and reinvesting the proceeds elsewhere.

Brian Feroldi has no position in any stocks mentioned. Like this article? Follow him on Twitter where he goes by the handle @Longtermmindset or connect with him on LinkedIn to see more articles like this.

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