Barracuda Networks has been acquired by private equity giant KKR in a deal valued at USD4 Billion. KKR intends to accelerate growth of the company by involving it in key security markets like managed detection and response, extended detection and response, and secure access service edge technology.
The transaction, between KKR and Thoma Bravo, is expected to close by the end of the year. Including debt, the sale is reported to be valued at USD4 billion.
Barracuda Networks focuses on providing small and medium size companies with a wide suite of cybersecurity offerings, which include email protection, network security, application security and data protection. The company has almost 200,00 customers globally, and was founded in 2003 stated a press release by the company.
KKR has made it clear that with the purchase of Barracuda, it intends to continue expanding the company’s offerings and revenues. The company’s revenues currently exceed USD500 million. The firm is also slated to continue its growth in security markets like SASE technology, according to the press release.
Joh Park, Head of Americas Technology Private Equity at KKR said in a statement that the company continues to view cybersecurity as an attractive sector and KKR was excited to back a market leader like Barracuda Networks. He also said that KKR believes that the company has just the right team and business model to capture business in the growing cybersecurity market.
Managing Director of KKR, Bradley Brown, said that he saw a huge opportunity for long-term growth for the company.
KKR has previously invested in the cybersecurity sector with investments in Cylane, ForgeRock, DarkTrace, Ping, NetSPI and Optiv, and the planned takeover of Barracuda Networks builds on this portfolio.
Barracuda optimistic about KKR involvement
CEO of Barracuda, Hatem Naguib, has expressed optimism about the commitment of KKR to the cybersecurity company
Naguib said in a statement that he believes that with the support of KKR, the company will continue to invest in growth, and give its team the inspiration and resources necessary to create and deliver next generation cybersecurity solutions for its partners and customers.
Soon after the planned take-over by KKR, Barracuda will implement the broad-based employee program by KKR, which makes employees part-owners in businesses acquired by KKR. This model has been implemented by the private equity firm in over twenty five companies it has acquired since 2011, the press release stated.
Barracuda was taken private by Thoma Bravo in 2017 in a deal valued at USD1.6 billion. After the deal, the company was propelled to profitable and accelerated growth, according to the press release.
Chip Virnig, partner at Thoma Bravo was quoted as saying that the company was proud to have supported Barracuda to grow its portfolio, and expand its customer base while achieving considerable revenue growth. He also said that the company was looking forward to witnessing Barracuda’s continued success.