Absolute Software Going Private in $657 Million Private Equity Acquisition

Private equity firm Crosspoint Capital Partners is acquiring Absolute Software for $657 million, taking the Canada-based company private.

Under the terms of the deal, Absolute Software shareholders will get $11.50 per share. That equals an enterprise value of about $870 million, including debt.

The acquisition, which should close in the second half of the year, is subject to shareholder, court and regulatory approvals, as well as other customary closing conditions.

Absolute Software’s Karen Reynolds

“This is good news for our shareholders, employees, customers and partners, as it delivers immediate cash value to all parties — and better positions Absolute to continue building on our strategic goal of becoming the leading cybersecurity provider of intelligent, self-healing security solutions for organizations worldwide,'” said Karen Reynolds, Absolute Software’s chief communications officer.

Upon completion of the deal, Absolute Software’s stock will no longer be listed on any public market and the company will cease to be a reporting issuer under Canadian and U.S. securities laws.

Positioning Absolute Software for ‘Exciting’ Future

Absolute Software’s Christy Wyatt

“For the past five years, our focus has been on creating the industry’s only truly self-healing security platform centered on resilience,” said Christy Wyatt, Absolute Software’s president and CEO. “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, while positioning Absolute for an exciting future across all key stakeholders, including Absolute team members throughout the organization, our OEM partners and reseller network, and our more than 21,000 customers around the world.”

Crosspoint Capital Partners is focused on the cybersecurity, privacy and infrastructure software markets. It will help drive Absolute Software‘s next phase of growth.

Last month, Absolute Software announced a restructuring plan to lower the company’s operating expenses. That included reducing its overall workforce by 5%, or 40 people, and reducing its office space.

“In the modern remote and hybrid work environment, maintaining device integrity and protection is more difficult than ever,” said Greg Clark, managing partner of Crosspoint Capital Partners. “We are impressed with how Absolute has built upon its asset visibility and control heritage, and expanded into solutions that provide endpoint resilience and the reliable access needed in today’s hybrid work environments. We look forward to partnering with Christy and the Absolute team as they continue to deliver highly differentiated solutions to the market.”