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Update 4:05pm: Updates shares.
KnowBe4 Inc. (NASDAQ:KNBE) soared 13% after private equity firm Vista Equity confirmed it agreed to purchase the cybersecurity firm for $4.6 billion.
Under the terms of the agreement, KnowBe4 (KNBE) holders will receive $24.90/share in cash, according to a statement on Wednesday. The deal is expected to close in the first half of next year.
The report comes after Vista Equity offered to purchase the cybersecurity firm for $24/share last month, which sent KnowBe4 shares up 28% on Sept. 19.
The $24/share offer represents a 44% premium to KnowBe4's (KNBE) closing price on Sept. 16, before the original offer was disclosed. Vista Equity reported a 17.4% stake in a 13/D filing at the time it reported it's offer.
After Vista's initial proposal, KnowBe4, under the supervision of the special committee and its legal and financial advisors, said it engaged in a "robust process," including looking at other alternatives ands its own standalone plan.
Vista said it entered into support agreements with KnowBe4 (KNBE) founder Stu Sjouwerman and investment funds affiliated with KKR and Elephant Partners. Under these agreements, which collectively account for approximately 83% of KnowBe4’s outstanding voting power, the stockholders have agreed to vote all of their shares of KnowBe4 common stock in favor of the deal.
Vista intends to finance the transaction through a combination of debt and equity financing, including the rollover and investment contemplated by the support agreements.
KnowBe4 (KNBE) short interest is 3.6%. The news was earlier reported by the WSJ.
Last month a Truist analyst said said he believed KNBE may need to see an offer of $28 to $30/share to get a deal done.