British cybersecurity company Darktrace is making headlines as it prepares to leave London’s stock market in a £4.3bn sale to US private equity firm Thoma Bravo. Shareholders will need to approve the takeover before it is finalized, but Darktrace’s chair, Gordon Hurst, believes the deal offers an attractive premium and opportunity for shareholders.
Founded in 2013, Darktrace has been a pioneer in using AI for threat detection and prevention. However, the company has faced criticism from investors, with short-seller Matthew Earl calling its business model “watery-thin” and questioning its marketing tactics. Investment bank Peel Hunt also raised concerns about the company’s culture, with some customers reportedly describing Darktrace’s product as “snake oil.”
Despite the controversies, Darktrace’s technology has been praised for its innovative use of unsupervised machine learning to analyze data and detect anomalies that could signal potential threats. Thoma Bravo sees the acquisition as an opportunity to bring this technology to more customers.
The departure of Darktrace from the London Stock Exchange is seen as a significant loss for the UK market, following the recent decision by British chip designer Arm to opt for a US listing. This move raises concerns about the future of the LSE as a leading listing venue.
Overall, Darktrace’s sale to Thoma Bravo marks a new chapter for the cybersecurity company and raises questions about the future of the UK tech industry on the global stage.
