Darktrace PLC (LSE:DARK) joined the list of companies departing the London Stock Exchange after agreeing to a US$5.3 billion bid from US private equity firm Thoma Bravo.
Shares in the cyber security firm jumped 19% on the news to 620p, or bang in line with the 775c all-cash offer.
Bravo said the acquisition gives it an “attractive opportunity to increase its exposure to the large and growing cybersecurity market and to invest to accelerate Darktrace's continued development and further scale the business globally”.
Darktrace is a pioneer in using self-learning artificial intelligence to neutralise cyber threats and automate responses to cyber incidents, added the statement.
“Rather than study historic attacks, Darktrace's technology continuously learns and updates its knowledge of an organisation's business data and applies that understanding to help transform security operations to a state of proactive cyber resilience.”
Directors of the UK group have unanimously recommended the offer, with the price a 148% premium to its IPO price of 250p on 30 April 2021.
Since, the business has had a difficult time as a listed company with the group having to employ E&Y to carry out an audit of its revenues after they were questioned in a short-selling attack.
A recent trading update reassured, however, and the shares had been steadily ticking up ahead of the Bravo offer.
If Darktrace leaves it will be another blow to the LSE, which is already desperately short of leading-edge tech companies.
Chip designer ARM Holdings is listed in the US despite being UK-based while a string of foreign-based companies in other areas have packed their bags and gone home including BHP, Tui, CRH, Ryanair and Kingspan.
Tellingly, Bravo said: “Darktrace's operating and financial achievements have not been reflected commensurately in its valuation with shares trading at a significant discount to its global peer group.”
The US group added it first approached Darktrace over a takeover in 2022 without a deal being struck.
Analysts have said that Darktrace’s valuation partly reflects the presence of Autonomy founder Mike Lynch as a significant shareholder.
A founder of Darktrace, he and his wife own 6.8% of the shares though he is not involved in the business’s operations.
Lynch is facing a fraud trial in the US following Autonomy’s sale to Hewlett-Packard.
He has denied any wrongdoing.