Mimecast Gets Shareholders’ Approval for Takeover Deal with Permira’s Funds

Mimecast Limited (NASDAQ: MIME) has moved closer to concluding its pending transaction with the funds advised by Permira, an investment firm based in the United Kingdom. Its shareholders unanimously voted in favor of the transaction and anticipate completion in the first half of 2022.

Shares of this 5.3-billion company inched down 0.1% to close at $79.32 on Friday.

Headquartered in London, United Kingdom, Mimecast provides risk management and cloud security services.

Inside the Headlines

At the special meeting of shareholders, roughly 99.76% of the votes were cast in support of the transaction. The voting percentage represents 75.3% of Mimecast’s outstanding shares.

Upon receipt of the shareholders’ approval, the company’s Chairman and CEO, Peter Bauer, said, “With this significant milestone now behind us, we look forward to completing the transaction with Permira and delivering immediate and premium value to our shareholders. As a private company supported by Permira, we will be well positioned to continue to strengthen the cybersecurity and resilience of organizations around the world.”

Background

In December last year, Mimecast agreed to be acquired by the funds advised by Permira in a cash transaction worth $5.8 billion. For every share, Mimecast shareholders will get $80 in cash.

Back then, the transaction received approvals from the company’s board of directors and an independent special committee. Upon completion of the transaction, Mimecast will cease to trade on the stock exchange and will operate as a privately-held company. 

The Principal at Permira, Pierre Pozzo, had said, “We look forward to partnering with the Mimecast team to accelerate the product roadmap and expand the go-to-market organization in order to drive further growth.”

Stock Rating

Last month, Keith Bachman, an analyst at BMO Capital, reiterated a Hold rating on Mimecast and the price target of $80 (0.86% upside potential).

Presently, the stock has a Hold consensus rating based on 6 Holds. The average Mimecast price target of $80 suggests 0.9% upside potential from the last closing price of $79.32. Over the past year, shares of Mimecast have surged 78.8%.

Risk Analysis

The TipRanks Risk Factors tool reveals that the Mimecast stock is presently at risk mainly from two factors: Finance & Corporate and Tech & Innovation. While the Finance & Corporate risk category contributes 15 risks to the total 49 risks identified for the company, Tech & Innovation adds nine risks.

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