SailPoint Technologies said it is to be bought by US private equity firm Thoma Bravo for US$6.9bn in cash, a 48% premium to its 90-day volume-weighted average price.
SailPoint stockholders will receive $65.25 per share in cash, the Austin, Texas-based identity security company said in a statement.
On completion of the deal, SailPoint will become a privately held company.
The deal marks Thoma Bravo's sixth security-focused acquisition which includes cybersecurity technology and software firms Proofpoint, Barracuda Networks, and Sophos Group PLC (LSE:SOPH) (Sophos Group PLC (LSE:SOPH)).
Just last month, Thoma Bravo acquired Anaplan for almost US$11bn.
SailPoint's shares closed at US$64.05 on Monday, up 29% from Friday.
Cybersecurity is a hot topic as companies guard against increasingly sophisticated attacks, with several venture capital firms and private equity firms rushing to invest in the sector.
Thoma Bravo, which manages more than US$103bn in assets, held the majority stake in SailPoint before its IPO in 2017. It sold its stake at the end of 2018.
In its most recent earnings report on February 28, SailPoint reported fourth-quarter revenue at US$135.6mln, up 31% year over year, while total revenue was US$439mln, up 20% over the prior year.