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.”
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