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Mimecast (MIME) up 6% on $5.8bn Permira buyout deal

By Joyanta Acharjee


Envelope and lock symbols representing Internet email security
Mimecast is an email security provider – Photo: Shutterstock

Mimecast stock rose on Tuesday on news the provider of cloud-based email management services will be taken private by private equity firm Permira in an all-cash deal valued at $5.8bn (£4.3bn).

As at 10:30 ET (UTC-5), the stock was up 6% at $79.74 per share.

Mimecast makes cloud-based software that protects corporate email from cyber threats and data leaks and allows service to continue in the wake of any attack.

Mimecast at-a-glance infographicMimecast key corporate information – Source: Mimecast

$80 per share offer      

Shareholders will receive $80 cash for each share they own, a 21% premium to Mimecast's 20-day volume weighted average price.

Permira will acquire all outstanding Mimecast stock to become privately-held once the transaction is complete in the first half of 2022.


6.49 Price
-1.530% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.04


475.08 Price
+2.100% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14


147.43 Price
+8.350% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.54


15.56 Price
-4.230% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.16

"This transaction follows a strategic process overseen and directed by an independent Special Committee of the board of directors that included discussion with a number of strategic and financial parties," Mimecast director and Special Committee chair Robert Schechter said in a press release. 

Significant cash value

"We are pleased to deliver significant immediate cash value to our shareholders and believe that this transaction is the best path forward for Mimecast and our stakeholders."

"Email is the leading vector for cyber-attacks, and phishing and impersonation attempts are continuously evolving. This means there has never been more urgency or need for organisations to protect their critical data and infrastructure," Permira Partners Michail Zekkos and Ryan Lanpher said.

The transaction follows a strategic review process which the company started in October.

Read more: Investing in Cybersecurity

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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