IT security

ABRY Partners has made a minority investment in Edgile, a provider of security and risk consulting services to Fortune 500 companies. The new capital will be used to accelerate the company’s expansion.

Edgile’s services include security strategy, identity and access management, data protection, cloud computing, and governance, risk and compliance. The company was founded in 2001 and is led by its CEO Don Elledge. Edgile is headquartered in Austin with additional offices in San Mateo, CA and Bellevue, WA (www.edgile.com)

The rapidly increasing need for better cyber security has positively affected Edgile as the company has doubled its revenues each year over the last two years.

“Edgile has proven itself to be a high-value, trusted partner to the Fortune 500, having established longstanding relationships with top companies in financial services, healthcare and manufacturing,” said Tyler Wick, Principal at ABRY Partners. “After evaluating dozens of security products and firms, we believe that Edgile is a leader in the identity and access management (IAM), and governance, risk and compliance (GRC) sector. The business is well positioned to capitalize on the strong demand for IAM and GRC services.”

ABRY invests in the media, communications, and business and information sectors. The firm is currently managing $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, a $950 million senior equity fund and a $1.5 billion senior debt fund. ABRY was founded in 1989 and is headquartered in Boston (www.abry.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-8-16

Providence Equity Partners has acquired VendorSafe Technologies, a provider of cloud-managed IT security services.  Upon closing of the transaction, the VendorSafe board of directors has named Kevin Watson, a Providence Equity Senior Advisor and cyber security industry veteran, as the company’s new Chief Executive Officer.

VendorSafe is a provider of cloud-managed IT security services that protect small- and medium-sized business’ information, payment systems, and on-premise public and private Wi-Fi networks from data breaches and other risks posed by hackers. Customers include retailers, quick serve restaurants and grocers among others.  The company is headquartered in Houston (www.vendorsafe.com).

“I am excited to join the VendorSafe team, as the company is very well positioned to address the rapidly expanding market opportunity driven by growing breach awareness in the small business community,” said Mr. Watson. “With more than 80% of breach attacks targeting small businesses, VendorSafe’s implementation technology uniquely positions us to address this growing segment of the market.”

Providence plans to assist VendorSafe in expanding into new markets such as hospitality, healthcare, legal, and insurance, and to expand into other geographic regions. Providence will also invest in VendorSafe’s technological infrastructure to allow it to expand its product offerings within cloud-managed network and wireless security.

“VendorSafe fits well with our investment strategy of identifying profitable growth companies that leverage cloud technology to deliver mission critical services to attractive end markets,” said Marco Ferrari, principal at Providence. “We are excited that Kevin Watson is joining VendorSafe as CEO. Kevin is a proven leader and an excellent complement to the existing VendorSafe team.”

Providence Equity Partners invests in the media, entertainment, communications and information industries and has approximately $40 billion of capital under management. The firm was founded in 1989 and is based in Providence with additional offices in New York, London, New Delhi, Hong Kong, and Beijing (www.provequity.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-20-14

Blackstone has entered into an agreement to acquire a majority stake in Accuvant, a provider of information security and services and a current portfolio company of Sverica International. Sverica International, which first invested in Accuvant in July 2008, will invest alongside Blackstone in the transaction. Accuvant management will also invest in the transaction.

Accuvant provides its enterprise customers with security software and hardware manufactured by its best-in-class technology partners. The company’s professional services arm offers enterprise security program design, enterprise assessments, incident response and remediation, PCI audit services, and IT compliance policy development and implementation. Since 2002, more than 4,500 organizations, including half of the Fortune 100 and 800 federal, state and local entities, have utilized Accuvant for their security needs. The company is headquartered in Denver and operates out of 35 additional locations in the US plus one international office in Toronto (www.accuvant.com).

Blackstone’s investment will be used by Accuvant to accelerate its pace of expansion and enable the management team to deploy additional capital and resources for a broader roll-out of its product- and service-based solution offerings.

Accuvant is one of several tech investments that Blackstone’s private equity funds have made in the technology sector over the last twelve months. Other recent investments include: Pactera Technology International Ltd, China’s largest IT outsourcing company; and Kronos, a global provider of workforce management software and services. Separately, Blackstone has made small minority investments in emerging security companies, including Carbon Black / Bit9, iSIGHT Partners, Secure Mentem, WatchDox, and Cylance.

“With this investment, we are excited to build upon Blackstone’s growing information security expertise as the sector becomes increasingly relevant across industries. Our investment will provide Accuvant’s experienced team with necessary resources as it continues to establish a reputation for excellence in the information risk and security space,” said Dave Johnson, Senior Managing Director in Blackstone’s Private Equity Group.

Blackstone is one of the world’s leading investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is headquartered in New York (www.blackstone.com).

Sverica invests in service oriented businesses and light industrial manufacturers. The firm targets companies with enterprise values under $100 million and EBITDAs greater than $3 million. Sverica was founded in 1993 and has over $425 million of assets under management across three funds. The firm has offices in Boston and San Francisco (www.sverica.com).

“We are looking forward to being part of the Blackstone family,” said Dan Burns, Accuvant co-founder and chief executive officer. “Security has transcended everyone and everything – from people to companies to nations. Accuvant has already helped thousands of organizations protect themselves and their customers. But, there’s so much more we can do. This partnership will enable us to accelerate our pace of innovation and expansion, and allow us to deliver new services and solutions that meet the constantly evolving needs of the global and critically important market.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14

Thoma Bravo has acquired Crossbeam Systems, a provider of network security services.  Crossbeam’s current senior management team will continue to manage the company.

Crossbeam Systems provides network security services to fixed and mobile operators such as Telefonica, BT, NTT Globe Telecom, Cell C and enterprise customers such as Fiserv, Volkswagen Group and Motel 6.  The company is headquartered in Boxborough, MA and has more than 200 employees in the United States, Europe, Latin America and Asia (www.crossbeam.com).

“Crossbeam is in a stronger-than-ever position to strengthen and expand our customer solutions,” said Mike Ruffolo, president and CEO of Crossbeam. “Thoma Bravo’s support and expertise in the software and technology industries will allow us to pursue new products and services through strategic initiatives and potential acquisitions to enhance our offerings.”

Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. Thoma Bravo currently manages approximately $4 billion of equity capital. The firm was founded in 1981 and has offices in Chicago, IL and San Francisco, CA (www.thomabravo.com).

“Mike and his team have built a first-class network security company with a proven track record and are uniquely positioned to lead the industry,” said Seth Boro, partner at Thoma Bravo. “We look forward to working with Crossbeam’s management to build off of that reputation and help them accelerate their growth through the buy and build strategy we have followed successfully many times before.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-12-12