Barracuda Networks (CUDA) to be acquired by Thoma Bravo for $1.47 billion in cash

Update 4/12/22: KKR to acquire Barracuda Networks Inc. from Thoma Bravo; financial terms were not disclosed.

    

• Barracuda provides email protection tools and has been transitioning to cloud-based security from network hardware.
• Thoma Bravo in 2016 acquired Qlik Technologies, a data analytics software maker, for $3 billion.
• Thoma Bravo reportedly has kicked the tires at Impera as well as F5 Networks (FFIV), a maker of data center networking gear.

  

Nov 27 (Reuters) - Barracuda Networks Inc on Monday agreed to be taken private by buyout firm Thoma Bravo LLC for $1.47 billion in cash, four years after the data security firm went public.

The offer of $27.55 per share represents a premium of 16.3 percent to Barracuda's Friday close. The company's shares were trading at $27.51.

Barracuda, which manages data security of its customers over the cloud on a subscription basis, competes with Palo Alto Networks Inc, Proofpoint Inc and Symantec Corp .

Barracuda will operate as a privately-held company and continue to focus on email security and data protection services. The transaction is expected to close by the end of February.

Thoma Bravo, known for its investments in software and technology companies, has spent billions buying several listed companies such as Qlik Technologies, Riverbed Technology, SolarWinds and Compuware.

Morgan Stanley & Co LLC is Barracuda's financial adviser, while Goldman Sachs & Co LLC, Credit Suisse and UBS Investment Bank were advisers to Thoma Bravo.

Long trade : CUDA +10% (5/17)

CUDA — is it a buy?

• Is CUDA a buy right after earnings?   $26.21

** charts after earnings **

  

• One week later:

Barracuda Networks (CUDA) reported earnings on Tue 11 Oct 2016 (a/h)

** charts before earnings **

  

** charts after earnings **

  

• One week later:

Barracuda Networks beats by $0.08, beats on revs:

• Reports Q2 (Aug) adjusted earnings of $0.21 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.13; revenues rose 12.1% year/year to $87.9 mln vs the $85.28 mln Capital IQ Consensus.
  • Gross billings were $100.3 mln vs. co's guidance of $96-99 mln, compared with $98.4 million in the second quarter of fiscal 2016.
  • The number of active subscribers grew ~14% to over 298,000 and the dollar-based renewal rate was 96% for the quarter.
• Gross billings were $100.3 mln vs. co's guidance of $96-99 mln, compared with $98.4 million in the second quarter of fiscal 2016.
• The number of active subscribers grew ~14% to over 298,000 and the dollar-based renewal rate was 96% for the quarter.

CUDA — is it a buy?

• Aug. 30:  Is CUDA a buy?    $23.58

• 6 weeks later:  about the same level

Barracuda Networks (CUDA) reported earnings on Thur 7 July 2016 (a/h)

** charts before earnings **

** charts after earnings **

• 2nd day after earnings:

Barracuda Networks beats by $0.09, beats on revs; CFO steps down :

• Reports Q1 (May) earnings of $0.20 per share, $0.09 better than the Capital IQ Consensus of $0.11; revenues rose 11.2% year/year to $86.7 mln vs the $83.92 mln Capital IQ Consensus.
  • Recurring subscription revenue grew to $65.3 million, up 20% from $54.3 million in the first quarter of fiscal 2016, representing 75% of total revenue, and
  • Appliance revenue was $21.3 million, compared with $23.7 million in the first quarter of fiscal 2016.
  • Gross billings were $98.2 million, compared with $94.3 million in the first quarter of fiscal 2016.
  • The number of active subscribers grew approximately 14% to over 286,000 and the dollar-based renewal rate was 93% for the quarter.
• Management Changes
  • As previously announced, Hatem Naguib and Ezra Hookano have joined Barracuda as vice presidents.
  • David Faugno will be stepping down as CFO on August 1, and Dustin Driggs, Barracuda's chief accounting officer and worldwide controller since 2012, will replace Faugno as Barracuda's CFO.

CUDA — is it a buy?

• Feb 1:  $11.05

• 3 days later: