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Thoma Bravo Prepares $7 Billion Exit from Imprivata Amid Healthcare Cybersecurity Surge

Thoma Bravo Prepares $7 Billion Exit from Imprivata Amid Healthcare Cybersecurity Surge


TL;DR

Thoma Bravo is exploring exit options for its healthcare IT security portfolio company, Imprivata, targeting a $7 billion valuation through a strategic sale or renewed IPO. The potential transaction reflects a significant return on Thoma Bravo’s 2016 acquisition of Imprivata for $625 million, driven by the company’s growth in annual recurring revenue to $400 million and strong EBITDA margins. This move underscores the elevated multiples commanded by cybersecurity assets in the healthcare sector, signaling continued private equity interest in defensive SaaS with high gross margins despite prevailing interest rates.


Deal Facts

Target Company
Imprivata
Seller
Thoma Bravo
Transaction Type
Potential Sale (Strategic Buyer or IPO)
Targeted Valuation
$7 billion
Entry Acquisition Date
2016
Entry Acquisition Price
$625 million
Estimated 2025 ARR
$400 million
Estimated 2025 EBITDA Margin
42%
Targeted Revenue Multiple
17x
Targeted EBITDA Multiple
30x
Advisors
Goldman Sachs (engaged by Thoma Bravo)
Sector
Healthcare IT Security (Identity Management)

Thoma Bravo, the Chicago-based private equity firm, is exploring exit options for its healthcare IT security provider Imprivata, targeting a valuation around $7 billion, according to sources familiar with the matter. The potential sale, which could materialize through a strategic buyer or renewed IPO process, underscores private equity exit strategies in SaaS amid 2026’s elevated multiples for cybersecurity assets.

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Deal Background and Financial Terms

Thoma Bravo acquired Imprivata in 2016 for $625 million from Tyco International. Since then, the Waltham, Massachusetts-based company has expanded its single sign-on and identity management platform, serving over 2,500 healthcare organizations including major systems like Cleveland Clinic and Kaiser Permanente. Annual recurring revenue has grown to approximately $400 million as of late 2025, with EBITDA margins exceeding 40%, per PitchBook data and firm disclosures.

The targeted $7 billion enterprise value reflects a 17x revenue multiple and over 30x EBITDA, aligning with Bain & Company’s 2025 Private Equity Report, which notes cybersecurity SaaS commanding premiums due to 25%+ CAGR in healthcare digital identity demand. Sources indicate Thoma Bravo has engaged Goldman Sachs to solicit bids from strategics like CrowdStrike, Palo Alto Networks, and Okta, alongside potential financial buyers such as Vista Equity Partners.

Imprivata Key Financial Milestones
Year ARR ($M) EBITDA Margin Valuation Multiple (Entry/Est. Exit)
2016 (Entry) ~150 35% 4x Rev
2022 280 38% N/A
2025 (Est.) 400 42% 17x Rev / 30x EBITDA

Synergies and Strategic Rationale

Imprivata’s platform addresses HIPAA-compliant access for electronic health records, a market McKinsey projects to reach $15 billion by 2028 driven by ransomware threats—up 300% in healthcare since 2023 per FBI data. Acquirers eye synergies in bundling Imprivata’s zero-trust authentication with broader endpoint security stacks. Thoma Bravo’s playbook mirrors its $12.5 billion Darktrace exit in 2024 and $4.3 billion Ping Identity IPO in 2022, both yielding 4-5x returns.

Leadership under CEO Wayne Morris, appointed in 2023, has prioritized AI-driven multifactor authentication, contributing to 25% YoY growth in 2025. No major layoffs are anticipated in a sale, though integration could trim 5-10% of back-office roles, consistent with Kirkland & Ellis-reviewed PE exits in tech services.

Industry Implications and Comparable Deals

This potential transaction signals resilience in healthcare cybersecurity M&A despite 2025’s high interest rates. BCG’s 2026 M&A Outlook highlights a 15% uptick in cross-border deals for healthtech security, with regulatory scrutiny from FTC and EU GDPR minimal for pure-play SaaS. Comparable exits include GTY Technology’s $1.2 billion ForgeRock acquisition by Thoma Bravo in 2021 (sold to private buyer at 12x revenue) and KKR’s $2.8 billion Optiv stake sale in 2025.

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  • Regulatory Risks: Low, given Imprivata’s U.S.-centric focus; contrasts with blocked $18 billion Broadcom-VMware antitrust saga.
  • Market Trends: Private equity dry powder at $2.7 trillion (per Preqin) favors defensive SaaS with 90%+ gross margins.
  • Valuation Shift: Multiples expanded 20% in Q4 2025 on AI tailwinds, per Goldman Sachs indices.

Thoma Bravo and Imprivata declined comment. A deal could close by mid-2026, offering a benchmark for private equity exit strategies in healthcare IT amid sector consolidation.

Sources

 

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Frequently Asked Questions

What is the strategic rationale behind Thoma Bravo’s potential exit from Imprivata?

Thoma Bravo’s potential exit from Imprivata is driven by the significant growth in the healthcare cybersecurity market, particularly for HIPAA-compliant access to electronic health records, a sector projected to reach $15 billion by 2028. Acquirers are seeking synergies by bundling Imprivata’s zero-trust authentication with broader endpoint security solutions, capitalizing on the 25%+ CAGR in healthcare digital identity demand. This strategy mirrors Thoma Bravo’s successful exits from Darktrace and Ping Identity, demonstrating a playbook of maximizing returns on cybersecurity assets.

What are the key financial metrics supporting Imprivata’s $7 billion valuation?

Imprivata’s $7 billion targeted valuation is supported by its strong financial performance, including an estimated annual recurring revenue (ARR) of $400 million as of late 2025 and EBITDA margins exceeding 40%. The valuation reflects a 17x revenue multiple and over 30x EBITDA, aligning with market trends where cybersecurity SaaS companies command premiums. This substantial increase from Thoma Bravo’s $625 million acquisition price in 2016 highlights the company’s significant value creation under private equity ownership.

Which potential buyers are being considered for Imprivata?

Thoma Bravo has engaged Goldman Sachs to solicit bids from a mix of strategic and financial buyers. Potential strategic acquirers include major cybersecurity players like CrowdStrike, Palo Alto Networks, and Okta, who could integrate Imprivata’s specialized healthcare identity solutions into their existing platforms. Financial buyers such as Vista Equity Partners are also considered, indicating continued private equity interest in high-growth, high-margin SaaS assets within the cybersecurity space.

How does this potential deal reflect broader trends in healthcare cybersecurity M&A?

This potential transaction signals strong resilience in healthcare cybersecurity M&A, despite 2025’s high interest rates, and highlights a significant uptick in cross-border deals for healthtech security. The sector is experiencing rapid growth, driven by increasing ransomware threats and the critical need for HIPAA-compliant access solutions. The high valuation multiples for Imprivata underscore the market’s appetite for defensive SaaS companies with strong recurring revenue and high gross margins, reinforcing the trend of private equity leveraging substantial dry powder for strategic acquisitions in this vital sector.

What are the regulatory and market risks associated with the Imprivata sale?

Regulatory risks for the Imprivata sale are considered low, primarily due to the company’s U.S.-centric focus, which contrasts with more complex cross-border or large-scale antitrust cases. From a market perspective, the deal benefits from substantial private equity dry powder, estimated at $2.7 trillion, which favors investments in defensive SaaS models boasting over 90% gross margins. Valuation multiples in the sector expanded by 20% in Q4 2025, driven by AI tailwinds, suggesting a favorable environment for a successful exit without significant market-related headwinds.