What happened
Shares of cybersecurity solutions provider Imperva (NASDAQ: IMPV) surged on Wednesday after the company agreed to be acquired in a $2.1 billion deal. Imperva released its preliminary third-quarter results along with that announcement. The stock was up about 28% at 11:30 a.m. EDT.
So what
Imperva has agreed to be acquired by private equity investment firm Thoma Bravo, LLC. Imperva shareholders will receive $55.75 per share under the deal, with the transaction valued at about $2.1 billion.
Image source: Getty Images.
The deal is expected to close by the first quarter of 2019. It provides a 45-day "go-shop" period, which allows the company to seek out better offers.
Imperva's preliminary results show that the company's growth is slowing. Imperva expects third-quarter revenue to come in between $90 million and $92 million, up just 8.5% year over year at the midpoint. That compares to 23% growth in the third quarter of 2017. Imperva also expects to report non-GAAP operating income between $8 million and $10 million in the third quarter, down from $11.4 million in the prior-year period.
Now what
Imperva will operate as a privately held company after the transaction closes. "The company will have greater flexibility to focus on executing our long-term strategy," said Imperva CEO Chris Hylen.
While many investors who bought shares of Imperva in the past year will realize a nice gain, the buyout price is well below the stock's all-time high. Shares traded above $70 in late 2015.
