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Litoum - were I invested here myself (I sold in 2023), then I too would probably hold on. Effectively c.£6 is now 'underwritten' by TB and another party 'might' yet come in. I don't personally think anyone else will get involved, but you can't really lose by holding, as you know that you will receive $7.70 (or c.£6). The exchange rate however, is very much worth keeping an eye on; especially for those with large holdings here. All the best to you and others, with the same conundrum to mull over here . . .🫡
Sheltie, I think your right. Everyone was looking through rose tinted glasses yesterday. Thanks for your reasoned and thoughtful insights regarding this stock. I could see it coming. I watch the trading carefully and could see this coming. I posted up a few days ago….the last time the share price was this high TB made an offer. I’m not selling. It’s worth more.
Not so very long ago, having rebuffed TB the first time, Poppy was saying"no, no, no, the London Stock Exchange and London is 100% the place for us". Now a complete 360 change of view! TB will be delighted (cash offers do have their perks for the acquirers!) shareholders in the main, will not be so happy. Pretty much the only PI winners here were those that sold very early on, when it spiked and those that bought in the last six months. Most others? A waste of time being invested here; as you could have made way more money elsewhere, over that same time period. DT has been a big disappointment let's face it, given the price that it floated at and now, where it has ended (c.£6, but depending on what happens with the exchange rate, maybe not even that much). This share just never got going . . .a dark day for Darktrace shareholders. 🤑
The offer not as high as CR888 was looking for when I looked last on 19th July 2023.
Tech investor Thoma Bravo agrees deal for London-listed firm
Price represents 44% premium to three-month average
Darktrace was backed by tech entrepreneur Mike Lynch
Darktrace shares jump 18%
LONDON, April 26 (Reuters) - Private equity firm Thoma Bravo agreed to buy Britain's Darktrace for $5.32 billion in cash on Friday, saying it would use its software expertise to drive growth at the Mike Lynch-backed cybersecurity company.
The agreed offer of $7.75, or around 620 pence, per share represents a 44% premium to Darktrace's three-month average share price, Thoma Bravo said.
Shares in the company, which have doubled over the last year, jumped 18% after the announcement to 608 pence.
Thoma Bravo partner Andrew Almeida said Darktrace was at the "very cutting edge" of cybersecurity.
"Thoma Bravo has been investing exclusively in software for over 20 years and we will bring to bear the full range of our platform, operational expertise and deep experience of cybersecurity in supporting Darktrace's growth," he said.
Founded in 2013 with the backing of entrepreneur Mike Lynch, Darktrace uses artificial intelligence to detect attacks and vulnerabilities inside IT networks.
Earlier in April it raised its forecasts for third time this year, reflecting demand as threats from digital attacks grows.
It listed at 250 pence in 2021.
Despite being the best performer among recent London listings, the stock has lagged U.S. peers, partly due to concerns about Lynch.
He is being tried on fraud charges in the United States over his former company Autonomy. He has denied the charges.
UNDERVALUED ON THE MARKET
Panmure Gordon analyst Harvey Robinson said the price did not reflect any significant synergies, and it could trigger interest from a trade buyer such as Palo Alto.
Thoma Bravo previously approached Darktrace in 2022 but talks did not result in an offer.
Darktrace's board rejected proposed offers from Thoma Bravo before agreeing the deal, according to the statement.
It believed its shares were undervalued and a cash offer offered certainty to investors, the statement said.
As well as commitments from Darktrace's board, Thoma Bravo said it had the backing of a KKR fund and Summit Partners. Combined they represent 14.4% of the shares.
The deal will require support from the holders of 75% of Darktrace's shares.
Thoma Bravo, which bought British software firm Sophos for $3.9 billion in 2020, said it intended to keep Darktrace headquartered in Britain.
Lynch, who has no longer has any role at Darktrace, owns 3.9% while his wife owns 2.9%, according to LSEG data.
Thoma Bravo was advised by Goldman Sachs and Darktrace was advised by Jefferies and Qatalyst Partners. (Reporting Paul Sandle in London and Yadarisa Shabong in Bengaluru and ; Editing by Mrigank Dhaniwala, Sarah Young and David Evans)
Sound man
/ good comments
How is the time line for a vote , and the last date another buyer can offer ?
there may or may not be other bids
the exchange rate may move in our favour or against (why the hell are they accepting a bid in usd anyway?)
the shareholders may vote for or against it.
the above are facts, ie, wait and see.
most of what i'm reading below is opinion (or agenda) stated as fact. ie, *******s.
Yes 27 million not a lot of shares , the Usdollar to pound exchange rate might not move in our favour
The offer fixed in US dollar and the pound might strength towards 126 or 127 ? Which means 610 to 615
I wonder if another bidder will come or this is it
I put in all my sell orders at 620 & they cleared at 08:45
So far hard to see who else might buy.... how much time before a vote?
620p could be it, but FT articles confirm other bids may or may not happen
Is anyone familiar with Takeover rules
I think the ongoing ML court case did not help Poppoy hold out for more
HomTanks26 Apr '24 - 17:42 - 4127 of 4127
0 1 0
1011 the VC investors in Dark Trace have in recent months bought into Device Authority an investee of Tern plc (TERN) might be worth a look for the next cyber security opportunity.
htTps://www.1011vc.com/portfolio/darktrace/
htTps://www.1011vc.com/portfolio/device-authority/
Thanks, Stevie, it's been a pleasure. And yes, I have doubled my investment, if all lands safely.
I'll be sure to keep an eye out for you - and drop by to say hello. That book is going to be frequently well-read. Take care.
Disagree buster123 - Given the original flotation price and the constant negative press coverage that this company has endured; the big Funds and Pension companies will definitely vote "yes". They will take their millions and move on. 100% TB will win here
The decision as to whether Darktrace offer will be accepted will not be down to individual shareholders, it will be down to the pension and unit trust and investment companies at the flotation 81.74% was held by institutions and the largest I have found is First Trust which held 4.34% of the company on the 29th of Feb this year 31 million shares.
This will be decided in the coming weeks and my guess is it will be rejected by the pension funds as been opportunistic.
From the RNS.
"Whilst the Darktrace Board remain confident that Darktrace's strategy can continue to deliver attractive returns for shareholders and that Darktrace has a strong future as a public company, the Darktrace Board believes that Darktrace's operating and financial achievements have not been reflected commensurately in its valuation with shares trading at a significant discount to its global peer group"
Poppy and the rest of the board only have themselves to blame for this one. Poppy stated that she was happy to remain on the LSE while the market significantly undervalued the company. She has done shareholders a disservice by taking this stance. She has been negligent in acting in the best interests of shareholders which should be of primary concern to the CEO.
Win/"Patience is a virtue" . I have about 20 on my watch list. Im going to the end with this ,so that will probably take a few months. We could get really lucky and get a market crash/correction just before we get paid out. My head tells me to go into something safe but my heart is saying go for growth/risk. If you need to contact me after this has gone ,you can find me on the CVSG board.
...and before someone jumps on me, I'm not saying there will be further offers. I think waiting for my 620 rather than taking 600-610 now is a fair offset for a potential much bigger gain - but I don't claim to know anything, I just form a strategy and let it play out.
We don't know what other parties might or might have been in discussions when TB were interested before, or since.
The fact that nobody else made a firm bid then is irrelevant - that was then and this is now. Things change in 12-18 months. The US market certainly has. I bought Crowdstrike at $109 at a similar time to the original TB interest and sold 80% of my holding recently at over $300. What is Darktrace worth over there now?
HKK - No point you buying back at 601 though, not enough gain to 620. As Sheltie says there's not a chance of another bid coming in. The End, never, FACT, or whatever else you want to write at the end of a sentence to make the opinion sound convincing. Bit like walking away as you have the last word in a debate/arguement with the other half, a weak attempt at not having to entertain their views when you've got no facts to back up your own.
I'll hold thanks.
Cheers,
Is anything coming to mind?
I wonder how long this will take to play out.
Point taken, just vote No anyway. Some one write to poppy, this company can do so much especially now with AI, the world needs Darktrace with us ahareholders too. Tell poppy she is missing out on the journey of her life and all those who come after her and put Britain back on the map
Crazy I can buy back at 601
Sadly PI's never make a difference. The II's rule the roost along with the BoD. It's done and the BoD are clearly very happy with it, as "unanimous" is strong language to use. No other bid was lodged last time around, so there won't be another one this time either. As HKK rightly says, 'scenario 3' is virtually nailed on and TB will get DT. The End
Will do.
The price of darktrace was about £5.00 before the take over announcement, all they have done is raised it by £1.19, not good enough. Share price was already heading towards £6.oo anyway. So everyone here use what little shares they have and vote No, see if we can make a difference.
There are still a few scenarios at play here as they stated Q3/Q4 until its possibly gets done, thus;
1. Alternative offers come through push over 620
2. It fails vote and SP drops 25-35% like 2022
3. It goes to vote and is approved at 620
I sold my entire holding this morning at 620 because if scenario 3 comes to play (high probability) then I've got my cash now vs leaving as dead wood until Q4. It also allows me to jump back in should scenario 2 happen (possible but less likely but could happen). Scenario 1 is the only one I potentially loose on but this is least likely.
Still think this is worth 700-1100 fair value but matching Crowdstrike much more, but as Dark have even said; they are not realising true value listed in UK vs US competitors so I think they have an appetite for scenario 3 to get on US markets where they will get the love and valuation they deserve ...