LifeLock Inc. (NYSE: LOCK), the provider of identity-theft protection services, is in talks with several parties about being taken private, people familiar with the matter said.
Cybersecurity companies have been attractive targets for middle-market deals lately, as high-profile hacks and data leaks have shifted the attention of CEOs and other executives on the issue of data security. Cybersecurity has been a driving force behind the high number of deals in technology M&A. Related deals from 2016 include: TPG’s $4.2 billion dollar deal for a majority stake in Intel Corp’s computer security unit; Thoma Bravo LLC’s buying Bomgar and healthcare IT security company Imprivata (NYSE: IMPR); Accenture’s purchasing Redcore; Vista’s agreement to buy compliance software provider Regulatory DataCorp Inc.; ASRC Federal acquiring Vistronix Intelligence & Technology Solutions from Enlightenment Capital; Honeywell International Inc. (NYSE: HON) selling Honeywell Technology Solutions Inc. to KBR Inc. (NYSE: KBR); FireEye Inc. (Nasdaq: FEYE) purchase of iSight Partners; and Avast Software's $1.3 billion deal to expand its security software services with AVG Technologies NV (NYSE: AVG).
Final bids for LifeLock are due this month and could value LifeLock at about $2 billion, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Buyout firm TPG is among potential suitors, two of the people said.
Elliott Management Corp., the activist investment group founded by Paul Singer, unveiled a stake in LifeLock in June and owns about 11 percent of the Tempe, Arizona-based company. LifeLock is working with Goldman Sachs Group Inc. (NYSE: GS) on the sale, the people said.
Representatives for LifeLock, TPG, Elliott and Goldman Sachs declined to comment.
Shares of LifeLock, which went public in 2012, have risen 25 percent this year, giving the company a market value of about $1.7 billion.
LifeLock, which has more than 4.4 million customers, provides a range of identity-theft protection services, including credit monitoring and alerts, according to its website. Chief Executive Officer Hilary Schneider has worked as a senior adviser to TPG, according to her corporate biography.
Additional reporting by Kamaron Leach, Mergers & Acquisitions