Exit Cyber: The Israeli Tuffin was acquired by the Turn / River Fund for $ 570 million
The sale amount reflects a 44% higher premium than the company’s value today on the New York Stock Exchange, where it was issued in 2019 at a value of $ 480 million. Shareholders will receive a rather disappointing price of $ 13 per share. Tuffin will once again be a private company
The Israeli cyber company Tufin was acquired by the American Turn / River Fund for $ 570 million – a premium 44% higher than the value of Tufin today on the New York Stock Exchange. Tuffin issued in 2019 at a value of about $ 480 million and since then its value has risen and fallen, and today it is traded at a value of $ 324 million. Despite its cyber activities, the company has not been able to generate significant value for its shareholders, who will receive $ 13 per share in cash. Upon completion of the transaction, Tuffin will become a private company.
Tufin was founded almost 20 years ago, by Ruby Kituv, the company’s chairman and CEO, and Reuven Harrison, the VP of technology. The American Turn / River Foundation specializes in software companies, improving the company and its value.
“Today’s announcement is a testament to Tuffin’s leadership in security policy management for hybrid networks and cloud environments,” said Ruby Kituv, Chairman, CEO and Co-Founder of Tuffin. “Since our inception we have taken significant steps in developing the automation solution and become market leaders. This deal is an important milestone for Tuffin, and as a private company we will have the opportunity to accelerate our growth by investing in our technology, people and market.” “Like Tufin and with their partnership and expertise, I’m sure we can achieve our goals faster.”
Polarization told Calcalist: “This is another step for the company. I do not feel a sense of missing out. This is a great opportunity, they are experts in their field and can accelerate our growth and increase the company significantly. This deal is very good for the company and its shareholders.” Polarization further stated that no layoffs or structural changes in the company are expected after the completion of the acquisition.
Tuffin settled for three years of trading in which it failed to generate a real return for its shareholders. Polarization says that “it was an interesting experience to be public, and there are things that can be done as a private company and everyone has their pros and cons. We stay in the company, we really love it and enjoy what we do and want to see it move to the next stage and grow faster.”
“Tufin is an industry leader in network security policy management and helps enterprise clients secure their network infrastructure and critical cloud assets,” said Dominic Ang, founder and managing partner of Turn / River Capital. “We are excited to bring our best operations team, with their deep expertise in marketing, sales and customer success, to our partnership with Tuffin. We look forward to working with them hand in hand to drive accelerated growth.”