Thoma Bravo to Buy Healthcare IT Security Firm

The $544 million deal adds to the private-equity firm's roster of software and technology-enabled services.
Christopher HosfordJuly 13, 2016

Private-equity firm Thoma Bravo is adding to its roster of software and technology-enabled services by acquiring healthcare IT security provider Imprivata for $544 million.

The companies announced a deal Wednesday that will take Imprivata private at $19.25 share, a premium of 33% to the closing price Tuesday. On news of the acquisition, the stock jumped more than 31% to $19.01.

Imprivata’s IT technology enables healthcare organizations to securely access, communicate, and transact patient information. The company went public in 2014, raising $75 million.

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“Given Thoma Bravo’s successful track record in both security and healthcare IT, today’s partnership is an endorsement of Imprivata’s corporate vision and our relentless focus on the customer experience,” Imprivata CEO Omar Hussain said in a news release.

“We are now in a stronger position to pursue market opportunities through innovating and expanding the products and services we offer,” he added.

San Francisco-based Thoma Bravo manages funds with more than $17 million in capital committed by investors. In June, it announced the acquisitions of Bomgar, which sells secure access software for computer systems and devices; Elemica, a provider of supply chain operating network management software; and data analytics company Qlik.

“The need to combine strong, compliant security technology with ease of access in the healthcare industry is growing by the day,” Scott Crabill, a managing partner at Thoma Bravo, said. “Imprivata is clearly positioned as the strongest vendor in this space and has a unique opportunity to continue to expand its market presence by providing additional high-value products to its customers.”

After reaching $20.83 last August, Imprivata’s shares plunged in October to $11.25 when it disclosed that preliminary sales in the third quarter had fallen short of expectations. The stock had been rising slowly before Wednesday’s news.

In the first quarter, the company posted a net loss of $6.7 million, matching its loss of a year earlier, and a 23% increase in revenues to $31.5 million.