US-based private equity firm Thoma Bravo was in the preliminary stages of discussions last month to acquire the threat detection and response startup Darktrace for an all-cash transaction potentially valued at around GBP 6 billion (~USD 7 billion). The cash offer was open until the 12th of this month for Thoma Bravo to make an offer. Darktrace’s shares also rose by 17% following the acquisition announcement.

However, the deal was called off as both parties failed to reach an agreement on the terms of a firm offer. According to British acquisition rules, Thoma Bravo is prohibited from making an offer to acquire Darktrace for another six months unless another company makes a formal offer or reaches an agreement with the company’s board.

Darktrace currently has an employee headcount of more than 2,000 and has more than 30 offices. The company serves 7,437 customers (up 32.1% YoY) in 110 countries and it recorded USD 415 million in revenue during FY2022 (up 45.7% YoY).

Despite its full-year results showing rapid growth, investors sold off the company’s shares as the chances of the takeover slid away with Darktrace’s shares declining by nearly 35%.