Hellman & Friedman Closes Buy of Checkmarx

Hellman & Friedman (H&F) has closed its buy of software security focused Checkmarx from Insight Partners for $1.15 billion in cash. TPG is co-investing in this transaction alongside H&F and will hold a minority interest in the company together with Insight Partners.

Checkmarx develops software that is used to identify, fix and block security vulnerabilities in web and mobile applications. The Tel Aviv-based company has more than 1,400 customers in 70 countries, including more than 40 of the Fortune 100 and half of the Fortune 50. Checkmarx, with more than 700 employees, was co-founded in 2006 by CEO Emmanuel Benzaquen and CTO Maty Siman.

“Now, more than ever, security must be top-of-mind for us all. We are relentless in our mission to empower organizations to deliver secure software at scale,” said Mr. Benzaquen. “Our partnership with H&F, TPG, and Insight Partners – three of the world’s top private equity firms – is the best possible validation of our vision, technology, and execution capabilities, all of which are aimed to make software and security inseparable. The team at Checkmarx is looking forward to this next phase of growth and to further advancing our leadership position in the software security market.”

“We are thrilled to be joining forces with Emmanuel, Maty, and the entire Checkmarx team,” said Tarim Wasim, a partner at Hellman & Friedman. “As cybersecurity threats continue to intensify, we strongly believe that embedding security early in the software development lifecycle is critical. Only one company – Checkmarx – has the breadth of products, developer-centric DNA, and culture of relentless innovation to serve the entire software security market. We look forward to building on Checkmarx’s tremendous success to date and supporting the company’s rapid growth in the years ahead.”

San Francisco-headquartered Hellman & Friedman invests from $300 million to $1 billion in companies across a range of industries including software & technology, financial services, healthcare, retail & consumer, and other business services. The firm was founded in 1984 and has raised over $50 billion of capital, invested in over 90 companies, and is currently investing its $16.5 billion ninth fund.

San Francisco-headquartered TPG invests in a wide range of asset classes, including private equity, growth equity, real estate, credit, and public equity. The firm, founded in 1992, has more than $84 billion of assets under management.

New York-based Insight Partners makes expansion and late-stage investments in software, e-commerce, internet and data-services businesses. Founded in 1995, Insight has over $20 billion of assets under management, has invested in more than 300 companies, and completed more than 200 transactions for its portfolio companies.

Checkmarx’s financial advisors on this transaction were Evercore Group (as the lead) and Stifel. Hellman & Friedman was advised by RBC Capital Markets.

Private Equity Professional | April 17, 2020

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