Websense to go private in $907m deal
Web filtering vendor says it had detailed discussions with several suitors before agreeing deal with Vista Equity Partners
Websense looks set to become the latest security vendor to move off the stock market after agreeing a $907m (£596m) deal with private equity firm Vista Equity Partners.
Rumours that Websense was exploring the possibility of a sale surfaced as long ago as April 2011, although at the time it was thought the web filtering specialist would not consider offers below $1bn.
In the end Vista's $24.75-a-share offer, which represents a 29 per cent premium over its closing share price on Friday, proved too good to refuse.
Set to close by the end of Q3, the offer comes unanimously recommended by Websense's board and "reflects the fair value of the company", according to chairman John Carrington. Websense's senior management and HQ are set to remain in San Diego.
"After detailed discussions with several potential acquirers, the Websense board of directors is pleased to approve this agreement," Carrington added.
Despite recent efforts to broaden its IT security play though its Triton platform, Websense has found growth hard to come by, with sales in its most recent quarter sliding four per cent year on year.
Vista chief executive Robert Smith stressed his firm consists of "long-term investors in enterprise software and data companies that are committed to being leaders in their markets".
"We look forward to working with the company to enable it to reach its full potential," he added.
Websense chief executive John McCormack argued that Vista would bring an operational discipline to the firm that will enable it to continue investing in the business.
Websense partners expressed relief that the vendor is following in the footsteps of the likes of Blue Coat and SonicWall by selling up to private equity, rather than being snapped up by a larger, generic IT manufacturer that could chew up and spit out its technology.
"This might help Websense to become more agile and more in control of its own destiny," said Mark Evans, UK country manager at Integrity Solutions.