Critical event management (CEM) software business Everbridge is going private in a $1.5 billion all-cash acquisition with Thoma Bravo.
Founded in 2002 as 3N Global, Everbridge helps governments and businesses across the industrial spectrum respond to emergencies. This includes risk intelligence to assess the threat landscape around employees’ homes or travel and mass notification tools to effectively communicate critical messaging during severe weather or terrorist attacks.
Everbridge’s shares peaked at $6.4 billion in September 2021 after going public on the Nasdaq in 2016. However, they plunged by more than two-thirds within four months. Since its worth dropped below $1 billion six months ago, things never recovered.
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On Friday, Thoma Bravo, a private equity group known for buying failing enterprise software startups, paid over 50% more for Everbridge’s market cap. The agreement represents a 32% premium over the last three months’ volume-weighted average share price (VWAP), with shareholders receiving $28.60 per share.
Thoma Bravo sees Everbridge’s SaaS tools as essential to companies managing geopolitical instability, climate change, and economic headwinds as elections increase.
“We look forward to working with Everbridge to expand their ability to capitalize on opportunities in an expanding marketplace for risk, compliance, and safety solutions,” Thoma Bravo partner Hudson Smith said. “Some of the world’s most respected corporations and organizations use Everbridge to comprehensively monitor risk and manage critical events, and we see a long runway ahead for product innovation and profitable growth.”
The business plans to finalize the sale in Q2 2024, pending regulatory and shareholder approvals.
