Absolute Software wraps up purchase of Carlyle’s NetMotion

Vancouver, British Columbia-based Absolute Software has acquired NetMotion Software from The Carlyle Group for US$340 million.

Vancouver-based cybersecurity software business Absolute Software has closed its acquisition of NetMotion Software from Carlyle Group for US$340 million. Seattle, Washington-based NetMotion is a provider of connectivity and security solutions.

PRESS RELEASE

VANCOUVER, British Columbia and SAN JOSE, Calif. — July 1, 2021 — Absolute Software Corporation (Nasdaq: ABST) (TSX: ABST), a leader in next generation Endpoint Resilience™ solutions, today announced it has completed its previously announced acquisition (the “Acquisition”) of 100% of NetMotion Software, Inc. (“NetMotion”), a leading provider of connectivity and security solutions, from The Carlyle Group.

The purchase price for the Acquisition was approximately USD$340 million, subject to customary closing and working capital adjustments, and was paid in cash. The Acquisition was financed with approximately USD$65 million in cash from Absolute’s balance sheet and with a USD$275 term loan (described below).

Absolute has the industry’s only undeletable defense platform embedded in over a half-billion devices, capable of providing complete connectivity, visibility, and control of endpoints and applications as well as the ability to autonomously heal critical controls to ensure they remain healthy and working effectively. With the addition of NetMotion, Absolute is bringing together the power of self-healing devices and applications with a resilient network connection to deliver the next generation of Endpoint Resilience, enabling organizations to prioritize a secure user experience while also minimizing the strain on IT and security teams, maximizing technology functionality, and strengthening overall security posture.

“We are very excited to officially welcome NetMotion to the Absolute family,” said Christy Wyatt, Absolute’s President and CEO. “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 deliver security, scalability, and connectivity without impeding the user experience, and without burdening IT and Security teams. Combining the power of self-healing devices and applications with a resilient network connection, we are well-positioned to be the single source of intelligence from the endpoint to the edge – enabling our customers to operate confidently and securely in the work from anywhere era.”

“One of the key trends emerging from the pandemic has been the broad rethinking of how to provide network and security services to distributed workforces,” said Garrett Bekker, Senior Research Analyst, Security at 451 Research, part of S&P Global Market Intelligence. “This shift in thinking, in turn, has fueled interest in zero-trust network access (ZTNA) and secure access service edge (SASE).”[1]

The Acquisition is expected to deliver meaningful benefits for Absolute’s strategic position, including:

Strengthening Absolute’s overall competitive position and establish Next Generation Endpoint Resilience as a critical capability in the ‘work from anywhere’ era.

Establishing a competitive position in the high-growth Zero Trust and ZTNA markets with a unique endpoint-led offering.

Securing a highly relevant position in mobile with an enterprise-grade VPN offering, and allowing customers to efficiently move through the transition to more modern security expectations of Zero Trust and SASE.
Delivering a complete IT view into the remote and hybrid worker, with the ability to collect in-demand data, allowing organizations to more quickly respond to users’ needs, improve compliance, and strengthen security posture.

Absolute funded the Acquisition with cash on hand and with the proceeds of a USD$275 million secured term loan from Benefit Street Partners LLC pursuant to a credit agreement dated July 1, 2021. The loan facility has a six-year term, bears interest at a floating rate predicated on the LIBOR or the US base rate plus a variable margin, and contains customary terms and conditions for a senior secured financing of this nature.

For additional information about Absolute’s acquisition of NetMotion, visit here. To learn more about how Absolute enables organizations with the power of self-healing endpoints, applications, and network connections, visit www.absolute.com.