Private equity firm Thoma Bravo is exploring a sale of Imprivata, a healthcare digital identity software provider, according to people familiar with the matter. The Imprivata sale process is currently in its early stages and is being managed by investment bankers at JPMorgan and Evercore, the sources said.
The potential transaction could value the company at up to $7 billion or more, representing a substantial return on Thoma Bravo’s initial investment, according to one source. The sources requested anonymity as the details are not public. Thoma Bravo, JPMorgan and Imprivata declined to comment, while Evercore did not respond to a request for comment.
Strong Interest Expected for Healthcare Security Company
The sale process is expected to attract interest from both corporate buyers and private equity firms, the sources indicated. Imprivata, based in Waltham, Massachusetts, provides identity and access management software that enables healthcare workers to securely and quickly log into clinical systems while controlling access to sensitive patient data.
According to the sources, Imprivata is generating approximately $500 million in annual revenue and experiencing rapid growth. The company is recognized as one of the security leaders in the healthcare industry, positioning it as an attractive acquisition target in a sector increasingly focused on data protection and cybersecurity.
Significant Value Creation Since 2016 Acquisition
Thoma Bravo acquired Imprivata in 2016 through a take-private transaction that valued the company at $544 million. Since that initial investment, the cybersecurity firm has expanded significantly through several add-on acquisitions, including its most recent combination with Verosint, which specializes in detecting identity threats and protecting businesses.
The potential $7 billion valuation would represent nearly a 13-fold increase from the original purchase price. This substantial value creation reflects both organic growth and strategic acquisitions that have expanded Imprivata’s capabilities in healthcare identity management and security.
Growing Demand for Identity and Access Management Solutions
Security software companies are expected to continue attracting strong merger and acquisition interest as the broader adoption of artificial intelligence amplifies concerns around data protection. Companies are increasingly seeking to acquire tools that safeguard sensitive data, ensure regulatory compliance and protect proprietary models, according to industry observers.
Additionally, high-growth cybersecurity companies have continued to command elevated valuation multiples in recent transactions. For example, CyberArk was acquired by Palo Alto Networks last year at a valuation of more than 17 times forward revenue, demonstrating the premium investors are willing to pay for leading security platforms.
Meanwhile, the healthcare sector faces unique cybersecurity challenges due to the sensitive nature of patient data and stringent regulatory requirements. Identity and access management solutions like those provided by Imprivata have become essential infrastructure for healthcare organizations seeking to balance security with operational efficiency.
The timeline for completing the Imprivata sale process remains unclear, as the company is still in the early stages of evaluating potential buyers. Further details about interested parties or a definitive timeline for the transaction have not been disclosed by the involved parties.
