Sophos to get new credit facility for buyout by Apax Partners

By Sara Rosenberg

New York, May 6 - Sophos plc plans on getting a new credit facility to help fund its acquisition by Apax Partners, according to a market source.

RBC is the lead arranger on the deal.

The credit facility will include a revolver and a "decent" sized institutional term loan, the source said, adding that more details will come out shortly.

Under the agreement, Apax is buying a majority interest in Sophos in a transaction valuing the company at $830 million.

When the transaction is completed, the founders of the company will retain a significant minority shareholding. TA Associates, a minority shareholder in Sophos since 2002, will sell its full interest to Apax in this transaction.

In its fiscal year ended March 31, the company had billings in excess of $330 million, revenue in excess of $260 million and generated unlevered free cash flow of about $55 million.

Sophos is a Boston-based IT security and data protection firm.

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