Software investment firm Thoma Bravo has entered into a definite arrangement agreement to buy Canadian developer of digital investigation solutions for enterprises and public safety organizations Magnet Forensics Inc. (TSX: MAGT) for an estimated CA$1.8 billion, aiming to create an end-to-end digital investigation platform by merging it with recently acquired Grayshift.
Under the deal, which is pending shareholder and other customary approvals, Thoma Bravo would acquire Magnet Forensics through a newly created corporation, Morpheus Purchaser Inc.
Following the closing of the Transaction, Thoma Bravo intends to combine Magnet Forensics and Grayshift LLC, of which it bought a majority stake in July 2022. The companies’ complementary offerings are expected to create an end-to-end digital investigations platform empowering more public safety agencies around the world to seek justice, solve crimes, and protect victims, the buyer said.
Adam Belsher and Jad Saliba, founders of Magnet, and David Miles and Braden Thomas, founders of Grayshift, will each hold critical leadership positions in the combined company. Magnet’s Chair, Jim Balsillie, will serve on the board of the combined company.
The deal will be submitted to shareholders’ vote during a special meeting scheduled in March.
Founded in 2010, Magnet is a developer of digital investigation software that acquires, analyzes, reports on, and manages evidence from digital sources, including computers, mobile devices, IoT devices and cloud services. The company’s software is used by more than 4,000 public and private sector customers in over 100 countries and helps investigators fight crime, protect assets and guard national security.
Grayshift is a provider of mobile device digital forensics, specializing in lawful access and extraction. Its solutions are purpose-built to help law enforcement and government investigative agencies swiftly resolve critical investigations and ensure public safety. Designed and assembled in the United States, the company’s GrayKey solution is used by over 1,200 agencies across 35 countries worldwide.
Over the past 20 years, Thoma Bravo firm has acquired or invested in more than 420 companies representing over $235 billion in enterprise value. With some $120 billion in assets under management as of end-September 2022, the firm has offices in Chicago, London, Miami and San Francisco.
Image source: thomabravo.com
