Shares tank as £6bn Darktrace deal collapses

ShAReS in Darktrace tumbled after takeover talks with a US private equity suitor collapsed.

The stock crashed nearly 35pc yesterday after negotiations with Thoma Bravo about a deal that could have valued it at £6bn broke down.

The Chicago-based business is one the world’s largest private equity houses and it has been circling the cybersecurity firm since the middle of last month.

‘early stage discussions took place about a possible offer for the company but an agreement could not be reached on the terms of a firm offer,’ a Darktrace spokesman said.

The shares fell 34.5p, or 177.7p, to 337.1p. A source close to the talks said questions were raised about Darktrace’s links to Mike Lynch, the founder of Autonomy who is fighting criminal fraud charges related to the sale of the software group to hewlett-Packard

in 2011. Lynch, 57, was an early investor in Darktrace and still has a 4.2pc stake.

Despite the share price fall, there was relief that yet another British tech company had not ended up in the clutches of private equity.

Darktrace only floated on the London Stock exchange last year but already it has become a takeover target as the pound weakens against the dollar – making British companies cheap for US buyers.

Darktrace yesterday reported a 46pc increase in full-year revenues from £246m in 2021 to £ 360m and an eight- fold increase in earnings to £55m.

It has 7,400 customers, a 32pc increase on the same period last year.

Neil Wilson, an analyst at Markets.com, said: ‘This is not a company that requires a private equity reboot. It has only been listed a year and it is still growing at a lick. Ordinary investors should be given a chance to hold its shares.’