Imprivata, a healthcare information technology security firm that has been losing money, has agreed to be purchased by private equity giant Thoma Bravo for $544 million.
Thoma Bravo is offering Imprivata shareholders $19.25 in cash per share, a 33% premium over the $14.50 closing price Tuesday, the companies said in a release Wednesday. Those shareholders representing a majority of outstanding shares must approve the deal for it to close.
Imprivata CEO Omar Hussain said Thoma Bravo's backing will strengthen his firm's growth and innovation.
The company, which provides an array of healthcare IT security products and services, posted a net loss of $23.1 million, or 94 cents per share in 2015 compared with a net loss of $19.2 million, or $1.37 per share in 2014. Imprivata extended its losses into the first quarter of 2016.
“Given Thoma Bravo's successful track record in both security and healthcare IT, today's partnership is an endorsement of Imprivata's corporate vision and our relentless focus on the customer experience—a value which has established us as the vendor of choice in healthcare IT security,' Hussain said in a release.
Imprivata is based in Lexington, Mass., while Thoma Bravo is headquartered in San Francisco.
In September, Thoma Bravo completed its acquisition of MedeAnalytics, a provider of cloud-based financial performance analytics for the healthcare industry. Prior investors Bain Capital Ventures and Emergence Capital Partners remained minority shareholders. Financial terms were not disclosed.
Commenting on the Imprivata deal, Scott Crabill of Thoma Bravo said, “The need to combine strong, compliant security technology with ease of access in the healthcare industry is growing by the day.” Crabill is a managing partner.
Thoma Bravo manages several private equity funds with about $17 billion of equity commitments.
Upon hearing Wednesday's news, San Diego-based law firm Johnson & Weaver questioned whether Imprivata shareholders are receiving a fair deal.
The firm said it was investigating whether Imprivata board members breached their fiduciary responsibilities by accepting $19.25 per share for the sale when one Wall Street analyst previously pegged Imprivata's price target at $20. The stock's 52-week high is $21.63.