KnowBe4 plans new debt financing for buyout by Vista Equity

By Sara Rosenberg

New York, Oct. 12 – KnowBe4 Inc. plans on getting new debt financing to help fund its acquisition by Vista Equity Partners, according to a news release.

Under the agreement, KnowBe4 is being bought for $24.90 per share in cash. The transaction is valued at about $4.6 billion on an equity value basis.

Other funds for the buyout will come from equity.

In connection with the transaction, Vista has entered into support agreements with Stu Sjouwerman, founder, chairman and chief executive officer of KnowBe4, and investment funds affiliated with KKR and Elephant Partners. Under these agreements, which collectively account for approximately 83% of KnowBe4’s outstanding voting power, the applicable stockholders have agreed to vote in favor of the transaction and to roll some of their existing equity into the acquiring company or purchase equity in the acquiring company.

Closing is expected to close in the first half of 2023, subject to customary conditions, including receipt of regulatory approvals and approval by KnowBe4 stockholders.

Morgan Stanley & Co. LLC is serving as financial adviser to KnowBe4’s special committee. Guggenheim Securities LLC is serving as financial adviser for Vista.

KnowBe4 is a Clearwater, Fla.-based provider of a security awareness training and simulated phishing platform.

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