Shadow of doubt

17 February 2021 By Aimee Donnellan Follow @aimeedonnellan

The cyber group’s top investor, Autonomy founder Mike Lynch, is facing U.S. extradition on fraud charges. Its top ranks are packed with his former colleagues. UBS has dropped out of the $5 bln listing. Pushing ahead despite such red flags suggests investors may pinch their noses.

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Swiss bank UBS has informed Darktrace that it is no longer able to work on the cybersecurity company’s 4 billion pound initial public offering, according to a Sky News report on Feb. 13.

UBS was appointed bookrunner on the IPO alongside Jefferies, according to Sky. Jefferies will now lead the syndicate and work with Berenberg and KKR Capital Markets.

Goldman Sachs declined to pitch for the IPO last September, Sky wrote on Sept. 19.

On Feb. 9 former Autonomy Chief Executive Mike Lynch appeared in court to fight his extradition to America over fraud charges connected to the sale of the UK software group to Hewlett Packard in 2011. Lynch denies all of the charges and is contesting the U.S. extradition, a spokesperson said.

Lynch was the first investor in Darktrace through his investment firm Invoke Capital. He and Invoke between them still own a stake in the group of around 40%. American buyout firm KKR, Summit Partners, Vitruvian Partners and Samsung Venture Investment Corporation are also investors.

Darktrace’s senior management and board include several former Autonomy personnel. Chief Executive Poppy Gustafsson was a corporate controller at Autonomy from 2009 to 2011, according to her LinkedIn profile. The company’s nine-strong board includes Andrew Kanter, who worked as chief operating officer and general counsel at Autonomy for 12 years.

Darktrace’s current Chairman Robert Webb was also chairman of Autonomy.

Darktrace plans to replace Webb with former Capita executive Gordon Hurst, according to Sky.

Darktrace declined to comment. UBS and Goldman Sachs declined to comment.

Context News

Swiss bank UBS has informed Darktrace that it is no longer able to work on the cybersecurity company’s 4 billion pound initial public offering, according to a Sky News report on Feb. 13.

UBS was appointed bookrunner on the IPO alongside Jefferies, according to Sky. Jefferies will now lead the syndicate and work with Berenberg and KKR Capital Markets.

Goldman Sachs declined to pitch for the IPO last September, Sky wrote on Sept. 19.

Darktrace’s current Chairman Robert Webb was also chairman of Autonomy.

Darktrace plans to replace Webb with former Capita executive Gordon Hurst, according to Sky.

Darktrace declined to comment. UBS and Goldman Sachs declined to comment.

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