Private equity firm Thoma Bravo will acquire SailPoint Technologies for $6.12 billion, in a deal that underscores a heightened demand for security software as businesses continue to digitize their operations.

A pandemic-led shift to remote working, as well as the Russia-Ukraine conflict, has fueled a spike in cyberattacks and bolstered demand for security software firms.

SailPoint shareholders will receive $65.25 per share in cash, the cybersecurity firm said on Monday, which represents a premium of 31.6% as of Friday close. The enterprise value of the deal is about $6.9 billion.

Shares of Austin-Texas based SailPoint were up 26% premarket. They lost about 9.2% in 2021.

SailPoint founder and Chief Executive Officer Mark McClain said the deal, expected to close in the second half of this year, would allow them to pursue long-term growth trajectory with greater flexibility, expand their markets, and accelerate innovation in identity security.

SailPoint specializes in software related to identity and access management, that helps businesses mitigate unwanted user access and reduce the risk of sensitive data leakage.

Thoma Bravo, which manages more than $103 billion in assets, is largely focused on software and technology companies. It has been doubling down on its investments in the sector.

Last year, it bought Proofpoint Inc in an all-cash deal that valued the cybersecurity firm at about $12.3 billion.. It agreed to buy software maker Anaplan Inc for $9.65 billion in March.

(Reporting by Eva Mathews in Bengaluru; Editing by Shailesh Kuber)