Thoma Bravo to Acquire Magnet Forensics for $1.3 Billion

Investment firm Thoma Bravo has agreed to purchase Magnet Forensics Inc., a developer of digital investigations software, for about $1.3 billion, the companies said in January statements. The deal is expected to close in the second quarter of 2023, pending customary approvals.

Magnet will be rolled into Thoma Bravo’s mobile-device digital forensics provider, Grayshift, which became a portfolio company in July 2022. Together, they will form a new private entity aimed at offering investigations platforms to public safety agencies.

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“Digital evidence is an increasingly critical aspect of investigations, and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater solutions to its customers,” Thoma Bravo Partner Hudson Smith said in a statement.

13-year-old Magnet develops digital investigations platforms that collect and analyze evidence from mobile devices, computers, cloud, internet of things-based devices, and other digital sources. The company’s public and private sector clients use the technology to safeguard assets and national security and investigate crimes.

Magnet’s founders, Adam Belsher and Jad Saliba, will assume leadership roles in the new entity, alongside Grayshift founders David Miles and Braden Thomas.

Magnet’s board unanimously approved the proposed deal; its shareholders will hold a special meeting in March to consider the transaction.

Under the terms of the agreement, holders of outstanding subordinate voting shares will get approximately $33 cash per share, and rolling shareholders will receive $29 for each outstanding subordinate voting (SV) share and multiple voting (MV) share.