news that private Equity group Thoma Bravo is buying Ping Identity for $2.8 billion in cash, which it broke earlier today, marking the beginning of the end of Ping’s life as a public company (at least for now). .
Thoma Bravo will pay $28.50 per share in the all-cash transaction, a price that Meczyki.Net noted, a roughly 63% premium over the company’s pre-announced share price. ping. News of the sale surfaced after Reported Earnings who missed out on both profit and revenue Estimate in the second quarter.
Given that M&A activity has been muted compared to the brisk 2021 pace, the deal is gaining attention. To better understand the transaction, we’re going to dive into Ping’s numbers to see what its selling price can tell us about the value of software companies today, and then on the identity market itself, The technology is part of the space with many public players. and a recent history of falling values.
What $2.8B Buys You Today
Given that Ping announced its earnings at the same time as its sale to Thoma Bravo, we can directly compare its recent results to its newly announced selling price.