Thoma Bravo Set to Acquire Magnet Forensics

Thoma Bravo is set to acquire Magnet Forensics, a Waterloo-based software maker that is used by defense forces and businesses to investigate cybersecurity threats.

Magnet Forensics will be purchased by a newly created corporation controlled by Thoma Bravo, Morpheus Purchaser, which will pay Magnet Forensics shareholders a 15% premium over Thursday’s closing price on the Toronto Stock Exchange. Post-buy, Morpheus will be merged with mobile device forensics outfit Grayshift, which Thoma Bravo acquired majority control of last July.

Launched in 2010, Magnet Forensics develops digital investigation software that acquires, analyzes, reports on, and manages evidence from computers, mobile devices, Internet of Things devices, and cloud services.

The company claims that its software is used by more than 4,000 public and private sector customers — e.g. police forces, intelligence agencies, tax officials, border guards, and militaries — in over 100 countries, helping investigators protect assets and guard national security.

The transaction of deal worth $1.8 billion CAD (~$1.34 billion) is expected to close by Q2 2023, subject to shareholder and other customary approvals.