Thoma Bravo explores sale of identity software firm Imprivata, sources say

• Imprivata currently generates around $500 million in revenue and is experiencing rapid growth, representing a substantial return on Thoma Bravo's 2016 acquisition at $544 million
• The sale is expected to attract interest from both corporations and private equity firms, driven by elevated demand for cybersecurity solutions amid AI adoption and data protection concerns
• High-growth cybersecurity companies command premium valuations, with comparable transactions like CyberArk valued at over 17 times forward revenue

Summary

Private equity firm Thoma Bravo is exploring a sale of Imprivata, a digital identity software provider specializing in the healthcare sector, according to sources familiar with the matter. The sale process, still in early stages, is being managed by investment bankers at JPMorgan and Evercore.

Key Financial Details:

• Potential valuation: up to $7 billion or more
• Current annual revenue: approximately $500 million with rapid growth
• Original acquisition: Thoma Bravo purchased Imprivata in 2016 for $544 million in a take-private transaction
• This represents a potential 13x return on the initial investment over roughly 10 years

Company Profile:

Imprivata, headquartered in Waltham, Massachusetts, provides identity and access management software enabling healthcare workers to securely access systems. The company has expanded through multiple add-on acquisitions, including its recent combination with Verosint, which specializes in identity threat detection.

Market Context:

The cybersecurity sector continues to attract strong M&A interest, driven by AI adoption and heightened data protection concerns. High-growth cybersecurity firms command premium valuations, with CyberArk (acquired by Palo Alto Networks) valued at over 17x forward revenue. The sale is expected to draw interest from both corporate buyers and private equity firms.

Industry Implications:

Growing AI implementation is amplifying demand for security tools that protect sensitive data, ensure regulatory compliance, and safeguard proprietary models, making cybersecurity assets increasingly valuable in the current market environment.