News that is private Thoma Bravo stock group purchase of Ping Identity for $2.8 billion cash went bust today, marking the beginning of the end of Ping’s life as a public company (at least for now).
Thoma Bravo will pay $28.50 per share in a cash deal, a price TechCrunch notes about 63% above the company’s stock price prior to the announcement. The news of the sale came after Ping declared income which missed both profit and revenue estimates in the second quarter.
With M&A activity having been muted compared to the roaring pace of 2021, the deal is drawing attention. To better understand the transaction, we’ll delve into the Ping numbers to see what its selling price can tell us about the value of software companies today, and then look at the identity market itself, part of a technology space with several public players. and a recent history of falling values.
What $2.8 Billion Can Buy Today
Given that Ping announced its earnings at the same time as the sale of Thoma Bravo, we can directly compare its recent results to the recently announced sale price.
Credit: techcrunch.com /