MobileIron (MOBL) - Get Report was climbing Monday after the IT-security-platform provider said it had agreed to be acquired by software company Ivanti in an all-cash transaction valued at $872 million.
Shares of the Mountain View, Calif., company at last check rose 4.7% to $6.95.
Under the terms, MobileIron holders will receive $7.05 in cash per share, a 27% premium to the unaffected closing price as of Sept. 24.
MobileIron said its board had approved the acquisition, which is expected to close late in the fourth quarter. The company has about 870 employees.
Ivanti, based in Salt Lake City, was formed in 2017 with the merger of Landesk and Heat Software. The combined company has about 1,800 employees in 23 countries.
Ivanti is backed by affiliates of the private-equity firms Clearlake Capital Group of Santa Monica, Calif., and TA Associates of Boston.
In addition, Ivanti also acquired mobile security company Pulse Secure. which is based in San Jose, Calif., from affiliates of the New York PE firm Siris Capital Group. Terms of this transaction were not disclosed.
"The combination of Ivanti, MobileIron, and Pulse Secure will cement Ivanti’s leadership in unified endpoint management, zero trust security, and enterprise service management, which are critical in today’s remote work environment," the company said in a statement.
The coronavirus pandemic has driven a surge in employees working remotely.
Morgan Stanley Senior Funding, Bank of America Securities, UBS Investment Bank, and BMO Capital Markets are providing debt financing for the acquisitions.
Barclays is financial adviser and Morrison & Foerster is legal adviser to MobileIron.