Update 4:05pm : Updates shares.
KnowBe4 Inc. ( NASDAQ: KNBE ) soared 13% 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 on Wednesday. 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%. The news was earlier reported by the WSJ.
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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KnowBe4 jumps 13% after Vista Equity agrees to buy for $4.6B (update)