Apple device management platform Jamf is becoming a private company, following a $2.2 billion deal with investment firm Francisco Partners.
An deal has been struck between Apple device management service Jamf and private equity firm Francisco Partners. Confirmed on Wednesday after some details of the deal leaked to Reuters, the agreement sees Jamf become a privately-owned company, instead of a public one.
The stock market responded to the news by raising Jamf's share price up by over 15% in premarket trading. The offer price is $13.05 per share, which is a premium of 24% on Jamf's September 11 closing price.
It is an all-cash deal valued at $2.2 billion. Aside from making Jamf a private company, the agreement has Francisco acquiring all outstanding shares. Vista Equity Partners, which had a majority ownership stake in Jamf in 2017 and currently owns 34% of the firm, will vacate its investment once the deal closes.
"Since Jamf's founding more than 20 years ago, we have made significant strides in advancing our mission to help organizations succeed with Apple," said Jamf CEO John Strosahl in a press release. Shifting to becoming a private company will provide "greater financial flexibility" and accelerate growth, Strosahl continued, as well as expansion through "innovation and M&A."
A switch to being a private company does give Jamf benefits over being a public organization. Aside from the aforementioned flexibility, it also reduces the amount of regulatory compliance it must deal with versus a public entity.
Private firms also don't face the same level of scrutiny and pressure for short-term results as a publicly traded firm normally would. It also helps to insulate the company from stock market volatility.
Cherry Zou, VP at Francisco Partners, calls Jamf a "tremendous opportunity," especially for a company with such an "enviable position in the market."
Following the closure of the deal, Jamf will continue to operate under its brand name, and will also stay at its headquarters in Minneapolis, Minnesota.
In the short term, the deal should not affect existing users of Jamf products and services, used to manage Apple hardware in corporate environments.
Continuing a protective legacy
Jamf is best known for its device management and security platform, with a specialization to Apple's hardware. This is handled through its Jamf Pro product, which centralizes management and allows for administrators to easily configure new devices on the corporate network quickly.
Over its 20-year history, it has managed to cement its position as an Apple device management specialist. In 2021, it had 47,000 customers and protected more than 20 million Apple devices, with the customer count now exceeding 76,000.
Its position has also led to it becoming an authority on Apple security when it comes to malware and other attacks. Its researchers have repeatedly detected and disseminated information on a variety of attacks and exploits, which also affects a wider pool of Apple users than its customers.
Over the years, its services have changed to include a push into education, as well as assisting with hardware deployments. In 2024, this expanded to a new "bring your own device" program.
Jamf's initial public offering occurred in 2020, with an initial price of $26 and aimed to raise $468 million in the process. For the IPO launch, the share price soared to $51, before closing at $39.20, which gave it a market capitalization of $4.6 billion.