Tufin Software Technologies, Ltd. (NYSE: TUFN) is an Israel-based cybersecurity and IT services company, which focuses on advanced firewall, hybrid cloud infrastructure and other security initiatives. Shares of the cybersecurity company are rallying 43% through early trading on Wednesday, April 6, 2022. Over the past three months, Tufin Software has seen average daily volume of 439,680 shares. However, volume of 6 million shares or dollar volume of around $77.4 million, has already exchanged hands through early trading.
Shares of Tufin Software are surging after the company announced that it has entered into a definitive agreement to be acquired by Turn/River Capital for all-cash transaction worth $570 million. Under the terms of the agreement, Tufin Software shareholders will receive $13.00 per share in cash, which represents a 44% premium compared to the company’s share price at the close on April 5, 2022.
Once the transaction is approved and completed, Tufin Software will become a private company and will partner with Turn/River Capital to continue innovation of enterprise security solutions. The Tufin board of directors have unanimously approved the acquisition agreement and will now face a shareholder vote for approval. In addition, the agreement includes a 30-day “go-shop” period where Tufin Software can solicit alternative acquisition deals to try to obtain a better price. If approved, the transaction is estimated to close during the second quarter of 2022.
“Today’s announcement is a testament to Tufin’s leadership in security policy management for hybrid networks and cloud environments,” said Ruvi Kitov, Chairman, CEO, and Co-Founder of Tufin. “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 deal represents an important milestone for Tufin, and as a private company, we will have the opportunity to accelerate our growth through investments in our technology, people, and go-to-market. The team at Turn/River specializes in helping software companies like Tufin, and with their partnership and expertise I am confident that we will be able to achieve our long-term goals faster.”
Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/