RTTNews | Apr 26, 2021 10:04AM EDT

10:03 Monday, April 26, 2021 (RTTNews.com) - Shares of cybersecurity platform Proofpoint, Inc. (PFPT) are up more than 30% Monday morning on the news of its decision to be acquired by private equity investment firm, Thoma Bravo in an all-cash transaction valued at about $12.3 billion.

As per the deal, Proofpoint stockholders will get $176 per share in cash, a premium of nearly 34% over the closing price of Proofpoint shares as on April 23.

"As the sophistication of cyberattacks continues to increase, Proofpoint is delivering the most effective solutions to help organizations protect their data and people across digital platforms. We look forward to partnering with the talented Proofpoint team and leveraging Thoma Bravo's significant security and operational expertise to help accelerate the Company's growth," said Chip Virnig, a Partner at Thoma Bravo.

The deal is expected to close in the third quarter of 2021.

Separately, Proofpoint reported that its net loss in the first quarter narrowed to $45.3 million or $0.79 per share from net loss of $66.8 million or $1.17 per share last year. On an adjusted basis, earnings of $0.49 per share beat the average estimate of analysts polled by Thomson Reuters at $0.4 per share.

Revenue in the first quarter increased 15% year-over-year to $287.8 million. The consensus estimate was for $281.6 million.

PFPT touched a new high of $174.25 this morning, before slipping to trade at $173.65 currently.

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