Thoma Bravo to acquire Magnet Forensics in C$1.8bn deal

Magnet Forensics is a Waterloo, Ontario-based developer of digital investigation solutions for cybercrimes.

• Post the sale, Thoma Bravo plans to merge Magnet with Grayshift, an Atlanta-based provider of mobile device forensics
• The merger is expected to build an end-to-end digital investigations platform
• Founders of Magnet, Adam Belsher and Jad Saliba, along with founders of Grayshift, David Miles and Braden Thomas, will hold leadership positions in the merged company

An affiliate of Thoma Bravo has signed an agreement to acquire Magnet Forensics, a developer of digital investigation products, for a total of C$1.8 billion. The deal is subject to regulatory approvals.

Based in Waterloo, Ontario, Magnet was established in 2010. The company develops digital investigation software that gathers, examines, reports on and maintains evidence from digital sources for cybercrimes. More than 4,000 enterprises and public safety organizations use its solutions.

Post the sale, Thoma Bravo plans to merge Magnet with Grayshift, an Atlanta-based provider of mobile device forensics. Grayshift was acquired by Thoma Bravo in July 2022. The merger is expected to build an end-to-end digital investigations platform.

Founders of Magnet, Adam Belsher and Jad Saliba, along with founders of Grayshift, David Miles and Braden Thomas, will continue to hold leadership positions in the merged company. Jim Balsillie, Magnet’s chair, will serve on the board.

“Digital evidence is an increasingly critical aspect of investigations, and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater solutions to its customers,” said Hudson Smith, a partner at Thoma Bravo, in a statement.

“We believe the combination of Magnet and Grayshift will unlock tremendous value for our customers by further integrating and expanding our product suite which will result in more seamless workflows in the recovery and analysis of critical digital evidence to investigations and ultimately contribute to our shared mission of the pursuit of justice,” said Adam Belsher, CEO of Magnet.

The legal advisor to Thoma Bravo in the deal is Kirkland & Ellis, while McMillan serves as its Canadian legal advisor.

Thoma Bravo, headquartered in San Francisco, is a private equity firm that invests in growth-oriented, innovative companies operating in software sectors. The firm managed more than $120 billion of assets as of 30 September, 2022. It has invested in over 420 firms with more than $235 billion in enterprise value.