Tufin Software Stock: Gets Acquired By Turn/River Capital (NYSE:TUFN)
Summary
Upon completion of the transaction, Tufin will become a private company and will partner with Turn/River to further accelerate its mission of helping enterprise customers use policy-driven automation to address the security threats of tomorrow. The agreement includes a 30-day “go-shop” period expiring May 5, 2022, which allows the Board and its advisors to actively solicit, initiate, encourage or facilitate alternative acquisition proposals from third parties. There can be no assurance that this “go-shop” will result in a superior proposal, and Tufin does not intend to disclose developments with respect to the solicitation process unless and until it determines such disclosure is appropriate or otherwise required. In late 2019, certain shareholders managed to dispose of their holdings at $17 per share in a secondary offering but soon afterwards Tufin started to experience sales challenges partially due to the outbreak of COVID-19 as many customers delayed purchases as their focus shifted to the health and safety of their employees along with executing business continuity plans. Personally, I would be surprised to see the company fetching a higher bid in the 30-day "go-shop" period given Tufins less-than-stellar growth, operating cash burn and lack of scale in a competitive market environment.
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