Waterloo tech company Magnet Forensics sold to U.S. firm Thoma Bravo for $1.8B

The Magnet Forensics Inc. building in Waterloo. (Dan Lauckner/CTV News Kitchener)

Magnet Forensics Inc. says it will be bought and taken private in a $1.8-billion deal signed with Thoma Bravo, a U.S. private equity firm operating in the software sector.

Waterloo, Ont.-based Magnet Forensics sells tools used to investigate digital crimes and cyberattacks.

It says the deal signed with Thoma Bravo amounts to a 15 per cent premium on the closing share price reached Thursday and a 41 per cent premium on its 90-day average.

Under the agreement, subordinate voting shareholders and their affiliates will receive $44.25 in cash per share, while rolling shareholders will nab $39 per share.

When the deal has closed, Magnet Forensics will be combined with Grayshift LLC, a company acquired by Thoma in July that offers investigative software to law enforcement and government agencies.

Magnet Forensics founders Adam Belsher and Jad Saliba will hold leadership positions in the new company, along with the Grayshift founders. Magnet board chair and former BlackBerry chief executive Jim Balsillie will serve on the board of the combined company.

This report by The Canadian Press was first published Jan. 20, 2023.