Tufin (NYSE: TUFN) is up 40% after announcing a definitive acquisition agreement with Turn/River Capital. As per the agreement terms, Turn/River Capital will acquire Tufin in a $570 million all-cash transaction.
Tufin shareholders to receive $13 per share
Tufin stockholders will receive $13 for each share in cash under the agreement terms, representing a 44% premium over Tufin’s closing stock price on Tuesday, April 5, 2022, the last full trading day before the announcement. Also, it will be a 54% premium over the company’s one-month volume-weighted mean closing price to April 5, 2022.
After completing the transaction, Tufin will be a private company that will collaborate with Turn/River to accelerate its goal of assisting enterprise clients in using policy-driven automation to address future security challenges. CEO and Co-founder of Tufin Ruvi Kitov said:
Today’s announcement is a testament to Tufin’s leadership in security policy management for hybrid networks and cloud environments. Since our inception nearly 20 years ago, we have made significant strides in developing our policy-based automation solution and have become a market leader.
This is a significant accomplishment for the company. As a privately-owned company, it will be able to invest in its technologies, personnel, and go-to-market strategies to drive growth. Turn/River’s team specializes in assisting software firms like Tufin, and Kitov said he is convinced that its guidance and expertise will help Tufin attain its long-term objectives more quickly. Tufin’s Lead Independent Director of the Board of Directors, Tom Schodorf, said:
We believe Turn/River Capital is the ideal partner for Tufin as the company makes further progress to a subscription-based revenue model. We are confident this transaction with Turn/River will allow Tufin to accelerate this transition, expand to new markets, and reach new customer segments.
Tufin Board of directors unanimously approved the transaction
The deal received unanimous approval from the Tufin Board of Directors, who recommended that shareholders should vote on the transaction during a special Shareholder meeting to be convened.Turn/River Capital managing partner and founder said:
We are incredibly excited to bring our best-in-class operations team, with their deep expertise in marketing, sales and customer success, to our partnership with Tufin. We look forward to working hand in hand with them to drive accelerated growth and scale.