Cybersecurity firm SailPoint targets $11.5B valuation in US IPO, returns to public markets after Thoma Bravo buyout

SailPoint, a cybersecurity firm specializing in identity and access management, is gearing up for a return to the public market with an IPO that could value the company at $11.5 billion. This move comes nearly three years after Thoma Bravo took the company private in a $6.9 billion all-cash acquisition.

Private equity-backed firms are expected to take the lead in the IPO market as investors look for opportunities to cash out and reallocate capital. Morgan Stanley and Goldman Sachs are heading the offering, with SailPoint set to trade on the Nasdaq under the ticker “SAIL.”

SailPoint and its parent company, Thoma Bravo, are offering 50 million shares priced between $19 and $21 each, aiming to raise as much as $1.05 billion. The Austin-based company is putting up 47.5 million shares, while Thoma Bravo is offloading 2.5 million.

As part of the IPO, Reuters reported, “SailPoint and parent Thoma Bravo are offering 50 million shares priced between $19 and $21 each to raise a total of up to $1.05 billion. Austin, Texas-based SailPoint is offering 47.5 million shares while Thoma Bravo is selling 2.5 million shares.”

This IPO will be closely watched, especially given the mixed results of other recent listings. It could serve as a signal for how receptive the market is to tech firms looking to go public.

Investors Are Watching Closely

The IPO landscape has shown signs of recovery, but investors are still cautious when it comes to valuations and long-term growth potential.

Founded in 2005 by Kevin Cunningham and Mark McClain, SailPoint helps businesses manage user access and reduce security risks. Its software allows organizations to control who has access to sensitive data, limiting the risk of unauthorized breaches. The company competes with heavyweights like IBM, Microsoft, Oracle, CyberArk, and One Identity.

Among its customer base are a major truck manufacturer, student loan servicer Nelnet, and UK supermarket chain ASDA.

Back in the Spotlight

Thoma Bravo, which manages about $166 billion in assets, has had a long history with SailPoint. The firm first acquired the company in 2014, then took it public three years later—marking its first-ever IPO of a portfolio company. By the end of 2018, Thoma Bravo had fully exited its stake.

SailPoint traded on the New York Stock Exchange from 2017 to 2022 before Thoma Bravo bought it again for $6.9 billion.

Now, SailPoint is preparing to re-enter the stock market, with significant backing from investors. AllianceBernstein and Dragoneer Investment Group have expressed interest in purchasing up to 20% of the shares in the IPO.

This listing will not only test investor appetite but could also influence how other private equity-backed tech firms approach their public offerings in the months ahead.