VANCOUVER, British Columbia & SAN JOSE, Calif .– (COMMERCIAL THREAD) – Absolute Software Corporation (Nasdaq: ABST) (TSX: ABST), a leader in next-generation Endpoint Resilience ™ solutions, today announced that it has completed the previously announced acquisition (the “Acquisition” of 100% of NetMotion Software, Inc. (“NetMotion”), a leading provider of connectivity and security solutions, to The Carlyle Group.
The purchase price of the acquisition was approximately US $ 340 million, subject to customary closing and working capital adjustments, and was paid in cash. The acquisition was funded with approximately US $ 65 million in cash from Absolute’s balance sheet and with a term loan of US $ 275 (described below).
Absolute has the industry’s only indelible defense platform integrated into more than half a billion devices, capable of providing complete connectivity, visibility and control of endpoints and applications, as well as the ability to repair autonomously critical controls to ensure they remain healthy and operate efficiently. With the addition of NetMotion, Absolute combines the power of self-healing devices and applications with a resilient network connection to provide the next generation of endpoint resiliency, enabling organizations to prioritize a secure user experience. while minimizing pressure on IT and security. teams, maximizing the functionality of the technology and strengthening the overall security posture.
“We are very pleased to officially welcome NetMotion to the Absolute family,” said Christy Wyatt, President and CEO of Absolute. “As organizations across all industries work diligently to determine what the future of work or learning looks like, there is a strong demand for capabilities that can autonomously provide security, scalability and connectivity. without hampering the user experience and without burdening IT and security teams. . By combining the power of self-healing devices and applications with a resilient network connection, we are well positioned to be the single source of endpoint-to-edge intelligence, enabling our customers to operate with confidence. and safe in the workplace from anywhere. ”
“One of the key trends emerging from the pandemic has been a fundamental rethink of how to deliver network and security services to distributed workforces,” said Garrett Bekker, senior research analyst, Security at 451 Research, who does part of S&P Global Market Intelligence. “This shift in mindset has in turn sparked interest in Untrustworthy Network Access (ZTNA) and Secure Access Service Edge (SASE).”1
The acquisition is expected to generate significant benefits for Absolute’s strategic position, including:
Strengthen Absolute’s global competitive position and establish the resilience of next-generation endpoints as a critical capability in the era of “work from anywhere”.
Establish a competitive position in the high growth Zero Trust and ZTNA markets with a unique terminal focused offering.
Secure a highly relevant position in the mobile arena with an enterprise-grade VPN offering and enable customers to effectively move through the transition to more modern security expectations of Zero Trust and SASE.
Provide a complete IT view to the remote and hybrid worker, with the ability to collect data on demand, enabling organizations to respond faster to user needs, improve compliance, and strengthen security.
Absolute financed the Acquisition with cash on hand and with the proceeds of a US $ 275 million secured term loan from Benefit Street Partners LLC pursuant to a credit agreement dated July 1, 2021. The loan facility has has a term of six years, bears interest at a variable rate based on LIBOR or the US base rate plus a variable margin, and contains the usual terms and conditions for senior secured financing of this nature.
For more information on Absolute’s acquisition of NetMotion, click here. To learn more about how Absolute enables organizations to harness the power of self-healing endpoints, applications and network connections, visit www.absolute.com.
About Absolute Software
Absolute Software is a leader in Endpoint Resilience solutions and the industry’s only indelible defense platform integrated into more than half a billion devices. By enabling a permanent digital connection between the endpoint and the company that distributed it, Absolute provides IT and security organizations with complete connectivity, visibility and control whether or not a device is connected to the network. business, and enables them to use Self-Healing Endpoint ™ ️ security to ensure that critical applications remain healthy and deliver the expected value.
NetMotion ™ (by Absolute) provides security solutions for millions of devices deployed around the world. Customers choose the NetMotion platform for its powerful Zero Trust Network Access (ZTNA), experience monitoring, and mobile-centric enterprise VPN functionality. These solutions stand out for their ability to actively improve the employee experience.
© 2021 Absolute Software Corporation. All rights reserved. ABSOLUTE and the ABSOLUTE logo are registered trademarks of Absolute Software Corporation in the United States and / or other countries. Other names or logos mentioned in this document may be trademarks of Absolute or their respective owners. The absence of the ™ ️ and ® symbols near each mark, or not at all, herein does not constitute an exclusion of ownership of the related mark.
This press release contains certain forward-looking statements and forward-looking information, as defined by applicable securities laws, including, without limitation, the United States Private Securities Litigation Reform Act of 1995 (collectively, the “forward-looking statements “). Forward-looking statements normally contain words such as “will”, “intend”, “anticipate”, “could”, “should”, “could”, “could”, “expect”, “” , “potential”, “project”, “assume”, “contemplate”, “believe”, “shall”, “intended” and similar terms and, in this press release, include, without limitation, any statement (express or implied) regarding: future events and anticipated results of operations and business strategies; the operational and financial benefits expected from the acquisition for Absolute; the competitive advantages expected from Absolute as a result of the Acquisition; the product offerings offered by the merged company and the nature and benefits of such proposed product offerings; the anticipated impact of the Acquisition on the business and future financial profile of the combined company as well as on financial and operating results; and other aspects of Absolute’s strategies, operations or operating results. Forward-looking statements are not guarantees of future performance, actions or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances. The expectations, assumptions and other important factors used in making forward-looking statements set out in this document include or relate to, but are not limited to: Absolute and NetMotion will be able to retain and hire key personnel and maintain relationships with major customers, partners, and others with whom Absolute or NetMotion does business; Absolute will be able to successfully integrate the operations of NetMotion and realize the expected benefits for Absolute from the acquisition; the combined company’s financial profile will align with Absolute’s expectations; Absolute will be able to implement its plans, forecasts and other expectations regarding Absolute’s business after completion of the Acquisition and achieve expected synergies; and there will be no significant business interruption after completion of the acquisition. Although management believes that the forward-looking statements contained in this document are reasonable, actual results could differ materially due to the risks and uncertainties associated with and inherent in Absolute’s business (as more particularly described in the “Risks and Risks” section. uncertainties ”of the Management’s Discussion and Analysis of Absolute Q3 F2021 Discussion and Analysis, which is available at www.absolute.com and under Absolute’s SEDAR profile at www.sedar.com and on EDGAR at www.sec.gov), including including the following specific risks: that the effect of the announcement and / or the completion of the Acquisition will compromise the ability of Absolute or NetMotion to retain and hire key personnel and to maintain relationships with key customers, partners and others with whom Absolute or NetMotion does business, and would otherwise adversely affect the results of operations and the business of Absolute or NetMotion in general; that Absolute may not be able to successfully integrate the operations of NetMotion; that Absolute may be unable to implement its plans, forecasts and other expectations regarding Absolute’s business after completion of the Acquisition as planned, or not at all, to achieve the synergies expected from the Acquisition; that the combined company will not have the projected financial profile and will not benefit from the financial advantages expected from the Acquisition; and that the announcement and / or completion of the Acquisition will otherwise disrupt Absolute’s business. Other significant risks and uncertainties applicable to forward-looking statements herein include, without limitation, unforeseen events, developments or factors causing the above expectations, assumptions and other factors to be inaccurate or irrelevant. Many of these factors are beyond Absolute’s control. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as of the date hereof and Absolute does not undertake to publicly update or revise the forward-looking statements included, whether as a result of new information, future events. or otherwise. unless required by applicable securities laws.
1 451 Research, part of S&P Global Market Intelligence
“Another day, another SASE-powered deal as Absolute takes over NetMotion” May 12, 2021