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A Battered Stock, a Bargain Buyout, and the Identity-Software Sector Gets a New Look

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Date: 2022-08-05 23:47:16

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Enterprise-software stocks have been beleaguered of late. But depressed valuations lure bargain-conscious private-equity buyers. On Wednesday, Ping Identity which sells identity-security software, announced a deal to be acquired by Thoma Bravo for $28.50 a share, or $2.8 billion. Ping went public at $15 a share in September 2019 and sold for an eye-popping 63% premium to Tuesday’s closing price.

Thoma Bravo has been a busy shopper. In June, the firm bought Anaplan for $10.4 billion in cash; in May, it paid $2.6 billion for payments-tech company Bottomline Technologies; and in April, it agreed to buy SailPoint Technologies which also sells identity software, for $6.9 billion. BTIG Holdings analyst Gray Powell notes that Thoma Bravo is paying about 6.5 times expected 2023 sales. Okta a Ping rival, trades for 6.8 times, while ForgeRock another peer, for 5.8. The SailPoint deal, Powell adds, was priced at just over 10 times 2023 sales.

Original Source: https://www.barrons.com/articles/a-battered-stock-a-bargain-buyout-and-the-identity-software-sector-gets-a-new-look-51659742798