Poppy Gustafsson Steps Down as Darktrace CEO Following $5.3 Billion Sale to Thoma Bravo
Poppy Gustafsson, the influential co-founder and CEO of British cybersecurity firm Darktrace, is set to leave her role following the company’s $5.3 billion sale to US private equity giant Thoma Bravo. Gustafsson’s departure marks the end of an era for Darktrace, a company she helped build from the ground up.
Founded in Cambridge in 2013 with backing from the late billionaire Mike Lynch’s Invoke Capital, Darktrace has become a prominent player in the cybersecurity industry. Gustafsson, who co-founded the company at the age of 30, has been a key figure in its rise, leading the firm through a successful IPO in 2021 and overseeing a dramatic increase in its share value.
The company was recently valued by analysts as undervalued despite its significant growth and technological advancements. In April 2024, Thoma Bravo agreed to acquire Darktrace, a deal that was in the works after prior negotiations in 2022 fell through.
Gustafsson, who was awarded an OBE for services to cybersecurity in 2019, will be succeeded by Jill Popelka, Darktrace’s Chief Operating Officer. Gustafsson expressed her pride in the company’s achievements, stating, “Darktrace has been a huge part of my life and my identity for over a decade. I am immensely proud of everything we have achieved in that time. Now is the right time to hand over the reins so Jill can lead Darktrace through its transition into private ownership and beyond. I remain Darktrace’s number one fan.”
Popelka, who joined Darktrace’s board in January 2024 and assumed her COO role in June, brings experience from senior roles at Accenture, Snap Inc, and SAP SuccessFactors. Her appointment comes at a critical time as the company transitions to private ownership.
Gustafsson’s Legacy and Challenges
Gustafsson’s departure also highlights her significant impact on the tech industry. As a female leader in a sector where women occupy only one in five senior roles, Gustafsson has been a champion of gender diversity. However, her departure reduces the number of female leaders in the UK tech industry, where women are underrepresented in senior positions.
Despite her success, Darktrace’s journey as a publicly listed company has been marred by controversy. The firm has faced criticism from short-sellers and analysts who questioned its business model and alleged questionable accounting practices. Reports from Shadowfall and Quintessential Capital Management (QCM) criticized Darktrace’s valuation and operations, leading to a sharp decline in its share price.
Gustafsson defended the company vigorously, asserting that Darktrace was run with the “greatest integrity” despite the criticisms. She also confronted allegations of money-laundering risks related to Invoke Capital, following a subpoena in 2018.
Darktrace’s Sale and Future Prospects
The sale to Thoma Bravo, which is awaiting final regulatory approval expected by September 28, 2024, represents a significant milestone for Darktrace. At the time of the sale, Lynch and his wife Angela Bacares held a 7% stake in the company, worth approximately £300 million.
The deal is set to conclude amid a backdrop of increasing interest rates and evolving economic conditions, which have influenced the valuations and profitability of tech and financial sectors globally. Oaktree Capital’s recent sale of Banca Progetto and Howard Marks’ comments on future interest rates further underscore the shifting landscape in which Darktrace is navigating its transition.
Gustafsson’s departure closes a chapter in Darktrace’s history, but her influence on the company and the tech industry will be remembered as she steps down to make way for Popelka’s leadership.
David Thompson
Financial Desk
