On Tuesday, KKR & Co Inc announced plans to acquire cybersecurity startup Barracuda Networks from its private equity owner, Thoma Bravo, showing its interest in cybersecurity companies from buyout firms. Financial terms were not disclosed in the deal, which confirmed an earlier Reuters report. Barracuda Networks, located in California, was valued at around $4 billion, according to sources who requested anonymity.
Cybersecurity dealmaking has increased in recent months as the pandemic has expedited the transition to remote working, requiring businesses to increase spending in the sector. The invasion of Ukraine by Russia has also resulted in an increase in cyberattacks.
On Monday, Thoma Bravo announced the acquisition of cybersecurity firm SailPoint Technologies, while Datto, a security solutions provider, was also taken private in a $6.2 billion deal by investers headed by Insight Partners.
In February, Reuters reported that, KKR is considering a sale or an IPO for Optiv Security Inc, a cybersecurity solutions distributor and consultant in the United States that it owns and controls at a valuation of more than $3 billion, including debt.
Barracuda, which was founded in 2003, manages its customers’ data security in the cloud on a subscription basis, offering a range of services such as email protection, software and cloud security, network security, and data protection.
According to KKR, the Barracuda deal would be completed by the end of 2022. KKR, which manages $471 billion in assets, has a long history of investing in cybersecurity firms. ForgeRock, Ping, Cylance, and DarkTrace are among the companies in which it has invested.
J.P. Morgan was the financial advisor for Thoma Bravo and Barracuda, while KKR was advised by Guggenheim Securities, DBO Partners, and Barclays.