Darktrace CEO Steps Down Amid $5.4 Billion Privatization Deal

Poppy Gustafsson, co-founder and CEO of Darktrace, has announced her departure from the cybersecurity firm as it prepares to transition from public to private ownership. This leadership change comes in the wake of a $5.4 billion (£4.3 billion) takeover deal with private equity firm Thoma Bravo, agreed upon in April 2024.

Gustafsson, who had been at the helm since 2016, stated that it was the "right time to hand over the reins" as the company readies itself to exit the London Stock Exchange after a three-year stint as a public entity. Her successor, Jill Popelka, who joined Darktrace at the beginning of 2024 and recently assumed the role of Chief Operating Officer, will step into the CEO position.

Darktrace, founded in 2013, has made significant strides in the cybersecurity industry, utilizing artificial intelligence to detect and respond to cyber threats. The company's innovative approach, inspired by the human immune system, has garnered a customer base of over 6,500 across 110 countries. This success led to its initial public offering in April 2021, which valued the company at £1.7 billion.

The leadership transition and privatization plans follow the tragic death of Mike Lynch, a key backer of Darktrace, who perished along with his 18-year-old daughter in a yacht accident off the coast of Sicily in August 2024. Lynch, often referred to as "Britain's Bill Gates," held a 7% stake in the company along with his wife, Angela Bacares, who survived the incident.

Gustafsson paid tribute to Lynch's contributions, stating:

"I am grateful to Mike for his support to me and to Darktrace which continued long after his involvement. He leaves behind an enormous legacy with us but also with the broader UK technology ecosystem."

Lynch's involvement with Darktrace had been complex due to legal challenges stemming from the $11 billion sale of his previous company, Autonomy, to Hewlett-Packard in 2011. Despite stepping back from Darktrace in 2018, his influence remained significant. Earlier in 2024, Lynch was acquitted in a U.S. trial related to the Autonomy sale, following a 2022 civil trial where he was found liable for fraud.

As Darktrace prepares for its next chapter as a private company, it continues to build on its reputation as one of Europe's fastest-growing tech firms. With partnerships with major tech companies like Microsoft and AWS, and deployments across various industries including finance, healthcare, and energy, Darktrace remains at the forefront of AI-driven cybersecurity solutions.

The company's transition from public to private ownership marks a significant shift in its trajectory, potentially allowing for more focused long-term strategies without the pressures of quarterly reporting. As cyber threats continue to evolve, Darktrace's AI-powered approach to security remains crucial in an increasingly digital world.