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Another light of the London Stock Exchange firmament is going out. Darktrace has accepted a £4.3bn offer from US private equity investor Thoma Bravo. That the UK market’s lone cyber security name is leaving will, of itself, raise eyebrows. That it is willing to do so for a relatively low price is a reflection of its troubled life as a public company. 

None of this is supposed to imply that Thoma Bravo’s latest offer — which follows an aborted approach in 2022 — is devoid of attractions. With $138bn of assets under management, it is one of the largest software-focused investors in the world and can support Darktrace’s strategy. It can use its clout to help the UK group expand its US client base. And it can provide Darktrace with capital and M&A expertise to snap up other companies in the fragmented cyber security space.

Financially, however, Thoma Bravo’s bid doesn’t look like a knockout. True, at 620p a share Darktrace is getting a 44 per cent premium on its three-month average share price, and a 148 per cent premium on its IPO price three years ago. That may explain why long-term investors KKR and Summit Partners have committed to tender their 11 per cent of the company, as have directors and insiders with a further 3 per cent. 

But that isn’t the whole story. Darktrace has long been poorly valued. Even at the offer price, it is only worth 7.3 times 2024 sales, on Panmure Gordon estimates. By contrast, US cyber security group CrowdStrike trades at 17 times revenues, and Palo Alto at 11.5 times. These companies are giants, compared to Darktrace, and scale commands a premium. Yet it is hard to shake the impression that Darktrace may be selling itself cheaply, especially given its improving results and the recent share price run.

By accepting Thoma Bravo’s offer, of course, Darktrace has in effect put itself in play. “Irrevocable” commitments, like those made by 14.4 per cent of shareholders, can be undone. Other suitors may yet emerge, pushing up the premium.

But the cyber specialist, still among the better performers of the IPO crop of 2021, has had a very bumpy three-year ride as a public company. It has had to deal with accounting concerns, vocal short sellers and its uncomfortable association with Autonomy’s Mike Lynch, Darktrace’s co-founder who is facing a fraud trial in the US where he has pleaded not guilty.

All that comes before you get to the much-discussed and debated valuation discount for UK-listed stocks. Perhaps it is little wonder that Darktrace did not hold out for top dollar.

camilla.palladino@ft.com

Activists and students participate in an encampment protest at the University Yard at George Washington University on Thursday.

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Activists and students participate in an encampment protest at the University Yard at George Washington University on Thursday.

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Pro-Palestinian encampments and demonstrations have cropped up at dozens of college campuses across the U.S., many turning chaotic as police arrived to disperse crowds and take protesters into custody.

Still, student activists nationwide appear determined to show their support for people in Gaza and push their universities to divest from companies with ties to Israel or who otherwise profit from its war with Hamas.

Hamas’ Oct. 7 attack killed 1,200 Israelis and resulted in another roughly 240 being taken hostage, according to Israeli authorities, while Gaza’s health ministry says Israel’s military response has killed more than 34,000 Palestinians, a majority of them women and children.

This latest wave of campus protests was sparked last week at Columbia University, where over 100 people were arrested after the administration called in New York City police to clear out a pro-Palestinian encampment. Undeterred protesters then built a larger encampment on an adjacent quad, prompting the school to switch to hybrid learning for the remainder of the semester.

Columbia officials and students have been in negotiations over clearing the encampment, with talks set to continue past their Friday morning deadline.

The administration originally set a deadline of midnight Tuesday for protesters to dismantle the setup, but repeatedly extended it due to what it described as constructive dialogue.

Columbia officials said Thursday that protesters had agreed to take certain steps, including removing a significant number of tents, limiting the protests to Columbia students only, complying with fire department requirements and prohibiting discriminatory or harassing language.

Officials announced just before midnight that “the talks have shown progress and are continuing as planned.”

“For several days, a small group of faculty, administrators, and University Senators have been in dialogue with student organizers to discuss the basis for dismantling the encampment, dispersing, and following University policies going forward,” the statement read. “We have our demands; they have theirs. A formal process is underway and continues.”

University President Minouche Shafik — who is facing criticism from faculty, donors and lawmakers for her handling of the protests — has said that if discussions are not successful, the school will have to consider “alternative options for clearing the West Lawn and restoring calm to campus so that students can complete the term and graduate.”

“I am deeply sensitive to the fact that graduating seniors spent their first year attending Columbia remotely,” she said. “We all very much want these students to celebrate their well-deserved graduation with family and friends.”

Also on Thursday, the University of Southern California in Los Angeles announced it would cancel its main commencement ceremony, citing the need for additional security measures. It had already canceled its valedictorian’s speech because of safety concerns stemming from the backlash she received over her social media posts about the Israel-Hamas war.

At Columbia, student protesters still have their tents set up and are in negotiations with university officials.

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At Columbia, student protesters still have their tents set up and are in negotiations with university officials.

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Meanwhile, at George Washington University in D.C., a second day of protests is underway Friday despite the university’s 7 p.m. deadline for clearing the encampments.

The GW Hatchet reports that police were in the area as about 40 protesters remained in their tents overnight, but no arrests were made. Protests resumed shortly after 7 a.m., prompting the university to close and restrict access to University Yard.

More than a dozen demonstrators left the encampment, with some rejoining the chants from the opposite side of the barricades.

GW Law School Dean Dayna Bowen said in a video message on Thursday that the school is working to move law students’ final exams, which are currently underway, to more quiet and secure locations because of the protests.

“Now let me emphasize, there is nothing threatening your safety that’s going on at this moment,” she said. “But yet you are our primary concern. To protect your safety and the integrity of our academic program we are relocating student final exams.”

Thousands of people sit silently while fellow demonstrators pray during a rally at George Washington University on Thursday night.

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Thousands of people sit silently while fellow demonstrators pray during a rally at George Washington University on Thursday night.

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More than 500 protesters have been arrested

Protesters were arrested at schools including The Ohio State University, the University of Minnesota and Indiana University on Thursday, joining the fast-growing list of demonstrators who have been detained by police nationwide.

That same day, two graduate students were arrested at Princeton University for setting up encampments in violation of school policy, while more than two dozen people were arrested at Emory University in Atlanta, where participants were also protesting a police training facility nicknamed “Cop City.”

Police officers arrest a protester as pro-Palestinian students demonstrate at Emory University on Thursday.

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Police officers arrest a protester as pro-Palestinian students demonstrate at Emory University on Thursday.

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At Emory University in Atlanta, protesters — including students from other Atlanta universities and area activists — clashed with state, city and university law enforcement on campus. Videos on social media show officers using tear gas, tasers and handcuffs to detain protesters, including faculty members.

Cheryl Elliott, Emory’s vice president for public safety, said in a statement Thursday that the university called in Atlanta police and George State Patrol officers to disperse the crowd after protesters ignored multiple warnings for trespassing. During subsequent confrontations, she said, law enforcement “released chemical irritants into the ground” after protesters threw objects at them.

She said 28 people had been arrested, including 20 members of the Emory community, “some of whom have been released.”

“We are working with responding agencies to expedite the release of any Emory community members who remain in custody,” Elliott added.

More than 100 people were arrested at Emerson College in Boston early Thursday morning after police tore down an encampment there. The school subsequently added Boylston Place Alley, where the encampment was located, to its list of campus locations where demonstrations are not allowed.

At the University of Southern California, 93 people were arrested Wednesday for trespassing, a misdemeanor offense. One arrest was made for assault with a deadly weapon, though the department did not say what the weapon was. No injuries were reported, the Los Angeles Police Department said.

At The University of Texas at Austin, almost 60 people were arrested Wednesday for loitering, but charges have been dropped for most of them.

Still, the following day, faculty members gathered at a rally and called for the school’s president, Jay Hartzell, to resign after he praised the school and law enforcement for exercising restraint against the protestors, according to NPR member station KUT.

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The yen fell to a new 34-year low on Friday after the Bank of Japan stuck to its dovish tone, holding interest rates near zero despite rising pressure on the central bank to tighten its policy and prop up the ailing currency.

The Japanese currency fell to ¥156.71 against the dollar after the BoJ unanimously agreed to continue guiding its overnight interest rate within a range of about zero to 0.1 per cent.

In March, the central bank ended its negative interest rate policy, raising borrowing costs for the first time since 2007.

In the wake of its historic shift away from ultra-loose monetary policy, governor Kazuo Ueda indicated he would like to move gradually to raise rates.

But his position has been complicated by the yen’s depreciation and signals that the US Federal Reserve will keep interest rates high to tame inflation.

Investors had not expected the BoJ to change its policy this week, with the focus on whether Ueda would strike a hawkish tone regarding future rate rises to slow the yen’s decline.

Instead, Ueda said at a news conference on Friday that the central bank’s board members judged there was “no major impact” from the weaker yen on underlying inflation for now.

“Currency rates is not a target of monetary policy to directly control,” he said. “But currency volatility could be an important factor in impacting the economy and prices. If the impact on underlying inflation becomes too big to ignore, it may be a reason to adjust monetary policy.”

The yen held steady at about ¥155.55 a dollar in morning trading but weakened sharply within 10 minutes of the BoJ’s announcement as traders resumed bets that the US-Japan rate differential would continue to apply downward pressure on the Japanese currency.

The Nikkei 225 stock index briefly rose more than 1 per cent after the announcement. It closed up 0.8 per cent on Friday.

The BoJ forecast “core-core” inflation, a closely watched measure that strips out volatile food and energy prices, would remain near its 2 per cent target for the next three years. Ueda added that the central bank would raise rates or adjust the degree of its easing measures if prices rose in line with its outlook.

In a single-page statement, the BoJ also noted that it would continue to purchase Japanese government bonds in line with its March decision but dropped a previous footnote on how much it would buy each month.

“There is no intention by the BoJ to stop the yen’s decline, at least looking at its statement and its outlook report,” said UBS economist Masamichi Adachi. “The finance ministry will have to act [to stem the yen weakness].

“It would have been more effective if both the government and the BoJ faced the same direction,” he added.

The BoJ has long struggled to maintain price rises at sustainable levels to keep the economy out of deflation. While domestic consumption remains weak, the falling yen is expected to fuel inflation in the months ahead by increasing the cost of imported goods.

Investors expect the BoJ to raise rates in July at the earliest if the bank confirms increases in service inflation and real wages, which would help boost consumption. Following the dovish tone on Friday, however, Adachi said he does not expect the next rate rise until October.

“Markets remain on high alert for any indication of whether the yen’s current weakness will be interpreted as a lasting inflationary signal,” said Naomi Fink, global strategist at Nikko Asset Management.

“The BoJ however is likelier to find any knock-on impact from yen weakness upon inflation as more concerning than short-term currency moves.”