KNBE - KnowBe4 jumps 12% after Vista Equity agrees to buy for $4.6B (update)

Update 8:15am : Adds deal confirmation

KnowBe4 Inc. ( NASDAQ: KNBE ) soared 12% in premarket trading after private equity firm Vista Equity confirmed it agreed to purchase the cybersecurity firm for $4.6 billion.

Under the terms of the agreement, KnowBe4 ( KNBE ) holders will receive $24.90/share in cash, according to a statement. The deal is expected to close in the first half of next year.

The report comes after Vista Equity offered to purchase the cybersecurity firm for $24/share last month , which sent KnowBe4 shares up 28% on Sept. 19.

The $24/share offer represents a 44% premium to KnowBe4's ( KNBE ) closing price on Sept. 16, before the original offer was disclosed. Vista Equity reported a 17.4% stake in a 13/D filing at the time it reported it's offer.

After Vista's initial proposal, KnowBe4, under the supervision of the special committee and its legal and financial advisors, said it  engaged in a "robust process," including looking at other alternatives ands its own standalone plan.

Vista said it entered into support agreements with KnowBe4 ( KNBE ) founder Stu Sjouwerman and investment funds affiliated with KKR and Elephant Partners. Under these agreements, which collectively account for approximately 83% of KnowBe4’s outstanding voting power, the stockholders have agreed to vote all of their shares of KnowBe4 common stock in favor of the deal.

Vista intends to finance the transaction through a combination of debt and equity financing, including the rollover and investment contemplated by the support agreements.

KnowBe4 ( KNBE ) short interest is 3.6%.

Last month a Truist analyst said said he believed KNBE may need to see an offer of $28 to $30/share to get a deal done.

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