January 13 () – Mimecast Ltd, an email security provider that announced its privatization deal last month, has been fired by Thoma Bravo over regulatory concerns and monopoly risks, according to sources familiar with the situation. llab-backed Proofpoint’s top offer was rejected.
Proofpoint said Mimecast could talk to other parties just weeks after Permira, a private equity firm, signed a $ 5.8 billion deal to buy Mimecast on Dec. 31. anonymity to discuss personal matters.
While the offer is 16 percent higher than Permira’s $ 80 offer per share, Mimecast has rejected Proofpoint’s request for an appropriate investigation, citing antitrust risks of merging two major email security vendors, people said.
Mimecast’s special committee reviewed the proposal with legal advisers and concluded that a combination of the two competitors could control more than 50% of the email security market. In their view, such an agreement would lead to long-term consideration by antitrust regulators, and there are several means, such as deprivation of property, people said.
After several discussions, Mimecraft felt that its concerns had not been properly addressed by Proofpoint, and indicated that it could extend its offer to appropriate investigations.
“After reviewing all the alternatives available for Mimecast, the Board of Directors determined that the Permira agreement was in the best interests of the shareholders and the company,” a Mimecast spokesman said.
“It adds value by delivering a big cash reward in a clear way to close.”
Proofpoint declined to comment. Thoma Bravo, a private equity firm that bought Proofpoint for $ 12.3 billion last April, declined to comment.
The Permira contract is expected to close in the first half of 2022, with the consent of shareholders.
Mimecast shares rose 1.43 percent to $ 80.32. (Crystal Hu’s interview in New York; edited by Richard Chang)