https://ift.tt/2QNcsJL To Buy Barracuda Networks From Thoma Bravo In A $4B Deal – Cryptovibes.com – Daily Cryptocurrency and FX News

While highlighting financial sponsors’ interest in cybersecurity businesses, Investment firm KKR & Co Inc (KKR.N) said on April 12 that it plans to acquire cybersecurity firm Barracuda Networks from its private equity owner Thoma Bravo.

Confirming an earlier report, the announcement did not disclose financial terms. After including debt, it valued the California-based company at $4 billion, sources who requested anonymity said. In 2017, Barracuda was taken private by Thoma Bravo at $1.6 billion, and it manages the data security of its customers over the cloud on a subscription basis.

Since the pandemic accelerated the shift to remote working, forcing companies to ramp up spending in the sector, dealmaking in cybersecurity has jumped in recent months. Cyberattacks have also spiked prompted by Russia’s invasion of Ukraine.

Investors led by Insight Partners took Datto, a security solutions provider, private in a $6.2 billion deal, while Thoma Bravo on April 11 agreed to buy cybersecurity firm SailPoint Technologies.

KKR was exploring an initial public offering (IPO) or sale for Optiv Security Inc, a U.S. cybersecurity solutions consultant and distributor it controls at a valuation of more than $3 billion, including debt, according to a Reuters report in February.

On Tuesday, KKR said the Barracuda deal is set to close by the end of 2022.

Barracuda, founded in 2003, provides a range of security services and offerings, including software and cloud security, email protection, network security, and data protection.

In 2017, Thoma Bravo took the company private, four years after it went public. With over $500 million in annual revenue, Barracuda has since grown into a profitable business. Also, it has made a series of acquisitions, including buying zero-trust access provider Fyde and extended detection and response service SKOUT Cybersecurity.

Barclays, DBO Partners, and Guggenheim Securities advised KKR, while J.P. Morgan acted as financial advisor for Barracuda and Thoma Bravo.