Darktrace (GB:DARK) stock soared after it confirmed that it has been approached by the U.S.-based private equity firm Thoma Bravo for a takeover, with talks in their initial stages.
An offer is expected by September 12.
Thoma Bravo has been on an acquisition binge in the technology industry for quite some time now. The company acquired Ping Identity (NYSE:PING), a software company that provides intelligent identity solutions, for $2.8 billion.
Darktrace stock jumped by 24%. Darktrace’s stock has been volatile in recent months; the stock gained 44% after dipping below the mark of 300p in July.
Many analysts also see this as a positive move, considering the volatility in Darktrace share prices.
Victoria Scholar, from Interactive Investor, said, “It has been a difficult year for M&A and IPO activity, given the volatile stock market landscape.
“Perhaps a privatisation of Darktrace is the best way to avoid the uncertainty of this year’s market gyrations, with the potential to float the company once again in the coming years once confidence is restored in equities.”
What is Darktrace in cyber security?
Founded in 2013, Darktrace is a cyber security company focused on innovative AI tech. It is among the highly popular areas in tech due to high cyber security demand due to hacking threats after the Russia-Ukraine war.
The company leads the AI-based cyber security space and provides solutions for threats such as ransomware, cloud attacks, SaaS attacks, and more.
It has more than 7,000 customers around the world, with some big names including Coca-Cola, Jimmy Choo, Anheuser-Busch, McLaren, and more.
Is Darktrace stock a buy?
According to TipRanks’ analyst rating consensus, Darktrace stock has a Moderate Buy rating. The rating is based on three Buy and one Sell ratings from analysts.
The average price target is 629.5p, which shows a change of 23.1% on the current price level. The analyst price targets range from a low of 320p to a high of 998p.
After the takeover news yesterday, Alex Henderson from Needham reiterated his buy rating on the stock. His target price implies an upside potential of 95%.
Is Darktrace any good?
The company remains positive for its full-year results due in September 2022 and expects revenues to grow by 48%. As per its trading update issued in July, the numbers look good and the final results could give another push to the share prices.
