Jamf to acquire Identity Automation for $215 million

MINNEAPOLIS - Jamf (NASDAQ: JAMF), a $1.78 billion market cap company known for its Apple (NASDAQ:AAPL) device management and security solutions, has entered into a definitive agreement to purchase Identity Automation, a provider of identity and access management (IAM) services. The deal, valued at approximately $215 million in cash, is set to enhance Jamf’s offerings by integrating Identity Automation’s IAM capabilities into its platform. According to InvestingPro analysis, Jamf’s stock is currently trading below its Fair Value, suggesting potential upside opportunity.

Identity Automation specializes in IAM platforms that cater to sectors with frequent role changes, such as education and healthcare. Their technology is designed to automate identity management workflows, reducing IT workload and improving user experiences. The acquisition will enable Jamf to offer a unified solution for secure device and application access, addressing the needs of dynamic identity management prevalent in industries like K-12 education. Jamf brings strong fundamentals to this acquisition, with an impressive gross profit margin of 79.58% and revenue growth of 11.92% in the last twelve months.

John Strosahl, CEO of Jamf, expressed enthusiasm about the acquisition, stating that the merger of security solutions will streamline the user experience and enable swift, dynamic access to necessary resources. The move is expected to assist organizations with shared-device models and mobile-centric workflows.

RapidIdentity, Identity Automation’s cloud-based IAM platform, offers features such as Identity Lifecycle Management, Access Governance, and customizable multi-factor authentication policies. This acquisition is poised to bolster Jamf’s security capabilities, particularly in safeguarding student data and facilitating secure access in education.

The transaction is anticipated to close by the end of the second quarter of fiscal year 2025, subject to standard closing conditions. Legal advisement for Jamf was provided by Kirkland & Ellis LLP, while Macquarie Capital and McDermott Will & Emery LLP advised Identity Automation.

Identity Automation, headquartered in Houston, Texas, has been a trusted partner for educational institutions, including Chicago Public Schools and Houston Community College. With this acquisition, Jamf aims to expand its reach and strengthen its position in providing comprehensive security solutions for Apple environments.

The information in this article is based on a press release statement from Jamf. Analysts maintain a positive outlook on the company, with price targets ranging from $16 to $27 per share. For deeper insights into Jamf’s financials and growth prospects, including exclusive ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Jamf Holding (NASDAQ:JAMF) Corp. reported mixed financial results for the fourth quarter of 2024. The company achieved a non-GAAP EPS of $0.17, surpassing the consensus estimate of $0.15, and recorded a non-GAAP operating income of $29.7 million, exceeding expectations. Total (EPA:TTEF) revenue reached approximately $163.0 million, slightly above the consensus, but the growth rate showed a deceleration from the previous quarter. Annual recurring revenue (ARR) grew by 10%, which was below the anticipated 11%.

JMP Securities adjusted the price target for Jamf to $27 from $30, maintaining a Market Outperform rating, while Mizuho (NYSE:MFG) Securities set a new price target of $18, down from $20, also maintaining an Outperform rating. JPMorgan initiated coverage with an Overweight rating and a $20 price target, highlighting Jamf’s potential to capitalize on the growing use of Apple devices in enterprises. In another development, Jamf announced that its Jamf Pro and Jamf School products attained StateRAMP Authorized status, meeting stringent security compliance requirements for state and local governments. This achievement underscores Jamf’s commitment to high-security needs for its customers.

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