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Mimecast Stock Rises on $5.8B Pact to Be Bought by PE Firm Permira

Mimecast shares jumped after the e-mail-security software maker agreed to be bought by PE firm Permira for $80 a share, or $5.8 billion, cash.
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Mimecast  (MIME) - Get Mimecast Limited Report shares rose after the e-mail-security software maker agreed to be bought by PE firm Permira for $5.8 billion cash.

That’s $80 a share. Lexington, Mass.-based Mimecast recently traded at $79.68, up 6%. It has soared 40% year to date.

The purchase price represents a premium of 16% to Mimecast’s unaffected closing stock price on Oct. 27. That’s the last full trading day prior to a Wall Street Journal article reporting that Mime was considering a sale. 

And the price is a 21% premium to the company’s unaffected 20-day volume weighted average price, the company said.

The agreement includes a 30-day go-shop period expiring on Jan. 6. The company will look for a better deal during that period.

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Mimecast expects the Permira deal to close in the first half. 

Another big cybersecurity name is Crowdstrike  (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report. It recently traded at $205, up 5%, but has dropped 25% in the past month.

“We are maintaining our $200 fair-value estimate for narrow-moat CrowdStrike Holdings, as its third-quarter results slightly topped our expectation for revenue while solidly beating our adjusted earnings anticipation,” Morningstar analyst Mark Cash wrote last week.

“After [the] shares have fallen over 30% over the last three weeks, we now view them as fairly valued. We believe CrowdStrike remains strongly positioned to take advantage of the shift toward cloud-based security solutions from legacy vendors.”

It also benefits from “a heightened threat environment requiring professional assistance, the adoption of zero-trust architecture and organizations looking for platform-based security solutions,” Cash said.