Private equity giants Bain Capital, Advent International, EQT AB, and KKR are vying to acquire Japanese cybersecurity firm Trend Micro, valued at approximately JPY1.32tn ($8.54bn), according to a report by Reuters citing unnamed sources familiar with the matter.
These firms have shown interest in taking Trend Micro private in recent weeks, the sources said, while cautioning that a deal is not guaranteed, and Trend Micro could opt to remain independent.
Following the news of private equity interest, Trend Micro’s stock surged by its daily trading limit of JPY1,500 (16.05%) to JPY10,860 during Tokyo’s Thursday trading session, making it the top gainer on the Nikkei 225 index.
If successful, the acquisition of Trend Micro would mark one of the largest leveraged buyouts in recent months, nd mark the latest sign of a potential revival of private equity dealmaking after a slowdown caused by rising interest rates and inflationary pressures in the post-pandemic environment.
Trend Micro has been exploring a potential sale since receiving acquisition interest last year, Reuters previously reported. The company has not yet commented on the matter, while Bain, EQT, KKR, and Advent also declined to provide statements.
Founded in 1988 by Steve Chang, Jenny Chang, and Eva Chen, Trend Micro started as an antivirus software maker but has since expanded into cloud computing, network security, and endpoint protection. In its third-quarter earnings report, the company announced a 6% increase in net sales to 68.1 billion yen and a 42% jump in operating income to 14.8 billion yen, with its operating margin reaching 24%.
Trend Micro competes with major US cybersecurity players, including CrowdStrike, Microsoft, Palo Alto Networks, and McAfee.
