On February 2, 2021, private equity firm Thoma Bravo announced that it had struck a deal to acquire Magnet Forensics, a leading provider of digital forensics software, for $1.3 billion. The deal marks Thoma Bravo’s largest ever software investment and is expected to close in the first quarter of 2021.
Founded in 2009, Magnet Forensics has become a world leader in digital forensics, providing software that helps law enforcement, government agencies, and corporations identify, analyze, and investigate digital evidence. The company’s flagship product, Magnet AXIOM, is a cross-platform digital investigation platform that allows investigators to quickly identify, analyze, and report on evidence from computers, mobile devices, cloud services, and other digital sources. The company also offers a range of other digital forensics products and services.
The acquisition is part of Thoma Bravo’s ongoing effort to invest in and expand its portfolio of software companies. In 2020, the firm invested more than $20 billion in software companies, including a $2.7 billion deal to acquire cybersecurity firm Sophos.
The acquisition of Magnet Forensics is expected to help Thoma Bravo further solidify its position as a leading provider of software solutions. In a statement, Thoma Bravo Managing Partner Seth Boro said, “Magnet Forensics is a leader in digital forensics and a perfect fit for Thoma Bravo’s portfolio. We look forward to working with the company’s talented team to support continued innovation and growth.”
Magnet Forensics CEO Adam Belsher added, “We are excited to join Thoma Bravo and leverage their expertise and resources to accelerate our growth. This is an exciting time for our team and customers, and we look forward to the opportunities ahead.”
The acquisition of Magnet Forensics is expected to be a major boon for both companies. For Thoma Bravo, it will provide an opportunity to further expand its portfolio of software companies, while for Magnet Forensics, it will provide the resources and expertise necessary to continue to innovate and grow.
Private equity firm Thoma Bravo has agreed to acquire digital investigation software developer Magnet Forensics for approximately $1.3 billion. Upon the deal’s closing, Magnet will be combined with mobile device digital forensics provider Grayshift, which became a portfolio company of Thoma Bravo in July 2022, to form a new private entity focused on providing end-to-end digital investigations platforms to public safety agencies. Magnet was founded by Adam Belsher and Jad Saliba in 2010 and develops digital investigation platforms that acquire and analyze evidence from mobile devices, computers, cloud, internet of things-based devices and other digital sources to help public and private sector clients safeguard assets and national security and counter crimes. The acquisition is expected to close in the second quarter of 2023, pending approvals by shareholders and regulators and other customary closing conditions. Belsher and Saliba and Grayshift Founders David Miles and Braden Thomas will assume leadership roles in the combined company, while Magnet Chair Jim Balsillie will serve on the new entity’s board. A special committee appointed by Magnet’s board tapped Morgan Stanley and CIBC Capital Markets to serve as its financial adviser and independent valuator, respectively, in the deal.
Thoma Bravo, a private equity firm, has entered into an agreement to acquire Magnet Forensics, a digital investigation software developer, for approximately $1.3 billion. Upon completion of the deal, Magnet will be combined with Grayshift, a mobile device digital forensics provider, to form a new private entity focused on providing end-to-end digital investigations platforms to public safety agencies. Magnet was founded in 2010 by Adam Belsher and Jad Saliba and specializes in digital investigation platforms that acquire and analyze evidence from mobile devices, computers, cloud, internet of things-based devices and other digital sources. Belsher and Saliba, as well as Grayshift Founders David Miles and Braden Thomas, will take on leadership roles in the combined company, while Magnet Chair Jim Balsillie will serve on the new entity’s board. The acquisition is expected to close in the second quarter of 2023, pending approvals by shareholders and regulators and other customary closing conditions. A special committee appointed by Magnet’s board tapped Morgan Stanley and CIBC Capital Markets to serve as its financial adviser and independent valuator, respectively, in the deal.
Thoma Bravo has agreed to acquire digital investigation software developer Magnet Forensics for approximately $1.3 billion. The acquisition is expected to close in the second quarter of 2023, pending approvals by shareholders and regulators and other customary closing conditions. Upon completion of the deal, Magnet will be combined with mobile device digital forensics provider Grayshift, which became a portfolio company of Thoma Bravo in July 2022, to form a new private entity focused on providing end-to-end digital investigations platforms to public safety agencies. Magnet was founded in 2010 by Adam Belsher and Jad Saliba and specializes in digital investigation platforms that acquire and analyze evidence from mobile devices, computers, cloud, internet of things-based devices and other digital sources. Belsher and Saliba, as well as Grayshift Founders David Miles and Braden Thomas, will take on leadership roles in the combined company, while Magnet Chair Jim Balsillie will serve on the new entity’s board. To facilitate the transaction, a special committee appointed by Magnet’s board tapped Morgan Stanley and CIBC Capital Markets to serve as its financial adviser and independent valuator, respectively. Hudson Smith, a partner at Thoma Bravo, expressed excitement at the prospect of combining the “complementary capabilities” of Magnet and Grayshift to create a leader in the digital forensics and cyber security space. He noted that the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater solutions to its customers.
