Highlights:
- Absolute Software, based in Vancouver, provides a platform for organizations to identify vulnerable and malicious devices within their corporate networks.
- Administrators have the ability to remotely freeze a device and delete any onboard data if they identify an endpoint that does not meet cybersecurity requirements.
Absolute Software Corp., a publicly traded cybersecurity company, recently announced that it has agreed to be acquired by Crosspoint Capital Partners for USD 657 million.
Crosspoint is also taking on the company’s USD 223 million in debt. Absolute Software is valued at USD 11.50 per share, a 34% premium to its closing price towards the second week of May 2023. The transaction occurred less than three years after the company went public on the Nasdaq for USD 11 per share.
Absolute Software, based in Vancouver, provides a platform for organizations to identify vulnerable and malicious devices within their corporate networks. The platform can automatically detect all employee devices on the network and gather hundreds of data points about each device.
Absolute Software’s platform helps administrators find devices without antivirus or incorrect data encryption. The platform also allows users to search for breach indicators and pinpoint anomalous device usage patterns that may indicate the presence of malware.
Administrators have the ability to remotely freeze a device and delete any onboard data if they identify an endpoint that does not meet cybersecurity requirements. Some forms of malware attempt to avoid these actions by disabling the device’s breach-prevention software. Absolute Software’s platform has a feature to address the risk of malware disabling a device’s breach prevention software. It can automatically reinstall itself when it detects signs of tampering.
Absolute Software is in several markets, including the endpoint security segment. In addition to its platform for detecting vulnerable and malicious devices, the company also offers a tool for remotely fixing malfunctioning programs on employee devices. Furthermore, it provides Software that securely lets employees log into work applications using encrypted connections.
In its fiscal second quarter ending on December 31, Absolute Software generated USD 57.2 million in revenue, a 17% increase from the same period the previous year. However, the company also reported a net loss of USD 7 million for the quarter.
Crosspoint, the private equity firm acquiring Absolute Software, specializes in investing in the enterprise software market. The firm has previously partnered with another private equity firm to purchase Forescout Technologies Inc. for USD 1.9 billion and was also part of an investor consortium that bought McAfee Corp. for approximately USD 14 billion in 2021.
Chief Executive of Absolute Software Christy Wyatt stated, “For the past five years, our focus has been on creating the industry’s only truly self-healing security platform centered on resilience. By partnering with Crosspoint, a proven cybersecurity investor with a track record in building growth companies, we are delivering immediate cash value to our shareholders.”
Shareholders of Absolute Software will have a special meeting in late June to vote on the acquisition. The company anticipates that the transaction will be completed by the end of the year.
