Silicon Valley-based private equity firm Crosspoint Capital Partners has entered the take-private cybersecurity trend by acquiring endpoint security vendor Absolute Software for $657 million.
Absolute Software, based in Vancouver, British Columbia, will leverage the investment to expand its focus on endpoint resilience and access beyond its asset visibility and control heritage. The deal represents a 34% premium to Absolute’s closing price and has received unanimous approval from Absolute’s board, with the transaction expected to close in the second half of 2023.
Absolute Software’s stock price surged 32.4% to $11.36 per share following the announcement, marking its highest trading value since February 14th. The acquisition comes after Absolute recently implemented cost-cutting measures, including laying off 40 employees, to reduce operating expenses.
The deal, valued at $870 million, including Absolute’s debt, showcases a 17.5% increase in Absolute’s value since its initial public offering 31 months ago.
Crosspoint Capital Partners praised Absolute’s expansion into solutions that address the challenges of maintaining device integrity and protection in the modern remote and hybrid work environment.
The acquisition marks Crosspoint’s first solo deal, having previously partnered with other investors in acquiring cybersecurity companies such as Forescout, ExtraHop, and McAfee. The private equity firm’s move aligns with the trend of private equity firms capitalizing on discounted opportunities to acquire publicly traded cybersecurity vendors.
