PE firm to acquire Keynote for $395 million

Private equity investment firm Thoma Bravo will acquire Keynote, the U.S. Internet and mobile cloud testing & monitoring company.


An affiliate of U.S. private equity investment firm Thoma Bravo will acquire Keynote Systems, the San Mateo, Calif.-based Internet and mobile cloud testing & monitoring company, the companies announced today.

The price? $395 million in cash, a 48 percent premium over the price of the company's shares at market close on Friday.

The big takeaway here is that Keynote is going private, which company executives believe will give it more flexibility (and perhaps funds) to build its mobile enterprise business. As mobile device adoption continues to increase, and telecommunications companies move to next-generation (4G, LTE) technologies, Keynote senses business opportunity.

The company's traditional area of expertise is in monitoring, load testing, privacy testing and UX evaluation for the web.

If the deal is approved by regulators, Keynote says its senior management will continue with the company and its headquarters will remain in San Mateo.

For Thoma Bravo's part, the PE firm has a long history of technology investments; it most recently contributed funds to electronic health record company SRS Software and enterprise applications vendor Made2Manage and acquired health iT company Amicas, media software company Telestream and network security company Crossbeam Systems.