Canadian developer of digital investigation solutions for enterprises and public safety organizations Magnet Forensics Inc., (TSX: MAGT) announced it has closed the plan of arrangement with Morpheus Purchaser Inc., a newly created corporation controlled by software investment firm Thoma Bravo.
Under the arrangement agreement signed in January, Thoma Bravo’s Morpheus Purchaser acquired all of subordinate voting shares for a cash payment of CA$44.25 each and multiple voting shares, all the shares held by the rolling shareholders for a cash payment of CA$39.00 each as well as rollover shares, which were exchanged for shares of the purchaser at an implied value of CA$39.00 each.
The subordinate voting shares of Magnet are expected to be delisted from the Toronto Stock Exchange and the company intends to apply to cease to be a reporting issuer under applicable Canadian securities laws.
“As we enter this new chapter for Magnet and Grayshift, we are extremely grateful to all of our stakeholders and Thoma Bravo, who have enabled this opportunity to help our global public safety and enterprise customers transform their digital investigations to help turn the tide on cybercrime and crimes with digital evidence such as human trafficking and child sexual exploitation,” Magnet Forensics CEO Adam Belsher said.
In January, Thoma Bravo entered into a definite arrangement agreement to buy Magnet Forensics Inc. for an estimated CA$1.8 billion, aiming to create an end-to-end digital investigation platform by merging it with mobile device digital forensics company Grayshift, of which it has bought a majority stake in July 2022.
“We are incredibly excited to bring together Magnet Forensics and Grayshift to create a leader in digital forensics and cyber security. Magnet has long been a trusted and strategic partner and we are confident that together we will accelerate innovation and transformation of digital investigations,“, Grayshift founder and CEO David Miles said.
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 435 companies representing over $240 billion in enterprise value. With some $120 billion in assets under management as of end-December 2022, the firm has offices in Chicago, London, Miami and San Francisco.
Image source: magnetforensics.com
