HCAP Partners has sold its portfolio company Datashield, a cybersecurity services provider, to ADT, a portfolio company of Apollo Global Management. According to HCAP Partners, Datashield is one of the fastest growing cybersecurity firms in North America.
Datashield provides cybersecurity services in conjunction with managed detection and response (MDR) services across all industries, including healthcare, financial services, manufacturing, energy, and legal. Datashield was founded in 2009 and is headquartered in Scottsdale, AZ (www.datashieldprotect.com).
Mid-market and large businesses are increasingly finding the need for 24×7 managed and monitored cyber service to help detect and respond to cyber attacks. It is estimated that by 2020, approximately 20 percent of mid-market and large businesses will be using MDR services up from less than 1 percent in 2016. With the close of the acquisition, Datashield will now operate under the new brand ADT Cybersecurity.
Frank Mora, Partner, and Nicolas Lopez, Principal, led the Datashield transaction for HCAP. “Since our initial investment in 2014, Datashield has done a fantastic job building out its platform and growing its business with new customer accounts. We were very pleased to work with the team to support the successful growth of Datashield and we look forward to their continued success and growth with ADT,” said Mr. Mora.
“HCAP has been a valuable partner in supporting Datashield and the growth of our company,” said Michael Malone, Datashield’s CEO. “Their support gave us the edge we needed to continue innovating and leading the industry in areas such as software and human capital.”
HCAP is a provider of mezzanine and equity capital to lower middle market companies throughout the western United States. The firm invests from $2 million to $9 million in businesses generating between $10 million and $75 million in revenues. Sectors of interest include healthcare, software, services, and manufacturing. HCAP has invested in over 60 companies since its founding in 2000 and is based in San Diego (www.hcapllc.com).
ADT, acquired by Apollo in February 2016, is a provider of security and automation services for homes and businesses in the United States and Canada. ADT is headquartered in Boca Raton, FL (www.adt.com).
© 2017 Private Equity Professional | December 6, 2017
