Thoma Bravo’s SailPoint targets $11.5bn valuation in US IPO

Backed by private equity giant Thoma Bravo, the Austin-based company plans to raise up to $1.05bn by offering 50m shares, priced between $19 and $21 each. This marks the first major tech IPO of the year and will test investor demand following lackluster market debuts from Venture Global and Smithfield Foods.

Private equity-backed firms are expected to drive IPO activity in 2025 as sponsors seek to divest holdings and return capital. Investors, however, remain cautious about valuations despite signs of recovery in the IPO market.

SailPoint specializes in identity and access management software, providing businesses with security solutions to prevent unauthorized access and reduce data breach risks. Its key competitors include IBM, Microsoft, Oracle, Okta, and CyberArk, with notable customers such as PACCAR, Nelnet, and ASDA. The firm has benefited from rising cybersecurity concerns, particularly with increasing AI-driven cyberattacks.

Thoma Bravo, which manages $166bn in assets, first acquired SailPoint in 2014 before taking it public in 2017. The private equity firm exited its stake in 2018 but reacquired SailPoint in 2022 for $6.9bn. Since going private, SailPoint has transitioned into a SaaS-first subscription model, positioning itself for stronger long-term growth.

AllianceBernstein and Dragoneer Investment Group are expected to buy up to 20% of the offering. Morgan Stanley and Goldman Sachs are leading the underwriting, with the stock set to trade on the Nasdaq under the symbol “SAIL.” Thoma Bravo will retain an 88.5% stake post-IPO, while proceeds from the listing will be used for debt repayment and equity settlements.

Source: Reuters

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.