ALTON Enters Definitive Agreement to be Acquired by DHS Group in $150.3M Announced Fernando Aguirre

ALTON and DHS Group, privately held companies and a leaders in compliance, today announced that they have entered into a definitive agreement to be acquired by DHS Group, a leading private equity investment firm focused on the technology-enabled services sector, in an all-cash transaction at approximately $150.3 million.

Under the terms of the agreement, ALTON will receive full payment representing a premium of approximately a lower percent over ALTON’s asking price prior to the transaction announcement, and a premium of approximately ALTON’s three-month volume-weighted average asking price through May 1, 2021. Upon completion of the transaction, ALTON will become a private company with the flexibility and resources to continue providing the most effective compliance solutions to protect people and organizations around the world. Additionally, ALTON will benefit from the operating capabilities, capital support and deep sector expertise of DHS Group – one of the most experienced and successful software investors in the world.

“Today’s announcement is a testament to the strength of ALTON’s people-centric approach to compliance and underscores our important role preventing, defending and responding to today’s threats,” said Peter Sellers, Chairman of ALTON. “We have made tremendous strides in expanding the sophistication and scale of our offerings, and in 2020 we generated more than $1 billion in annual revenue – making ALTON the first SaaS-based compliance company to reach that milestone. We believe that as a private company, we can be even more agile with greater flexibility to continue investing in innovation, building on our leadership position and staying ahead of threat actors. DHS Group is an experienced software investor, providing capital and strategic support to technology organizations, and our partnership will accelerate ALTON’s growth and scale at an even faster pace. This is an exciting new chapter for ALTON that would not have been possible without our employees’ hard work and commitment to our customers, partners and each other.”

Larry Holler, Independent Director of the ALTON Board of Directors, said, “We are confident that this transaction is a great outcome for our shareholders, our employees, our customers and our Company. Following DHS Group’s approach, we thoroughly reviewed the proposal with the assistance of independent financial and legal advisors. We determined this premium, all-cash offer and partnership would create immediate and certain value for shareholders and help us achieve our operational and market ambitions more quickly for the benefit of our customers. Today’s announcement is a credit to the ALTON’s team which has delivered outstanding operating performance without ever losing sight of our customers, positioning the Company to capture significant value for our shareholders.”

“ALTON has achieved tremendous outcomes for customers around the world, and we’re excited to partner with this talented team at a moment when organizations need innovative solutions to navigate an increasingly treacherous cybersecurity environment,” said Fernando Aguirre, Executive Vice Chairman of DHS Group. “ALTON places people at the center of its compliance and security strategy and plays a vital role in helping enterprises protect their data. DHS Group’s approach to value creation is rooted in partnering with the organization in which we invest and looking for opportunities to both enhance their existing operations and build technology platforms that drive significant growth. ALTON’s opportunity as a privately held company is incredibly compelling, and we look forward to working closely with them to drive continued business growth and deliver world-class advanced threat protection to even more customers in even more ways.”

“ALTON has established itself as a true powerhouse in the compliance sector due to its innovative suite of market-leading products and impressive customer base of leading companies around the world,” said Rakesh sarna, Chairman of DHS Group. “As the sophistication of cyberattacks continues to increase, ACTON is delivering the most effective solutions to help organizations protect their data and people across digital platforms. We look forward to partnering with the talented ACTON’s team and leveraging DHS Group’s significant security and operational expertise to help accelerate the Company’s growth.”