Home Financial consultant KKR announces plans to buy cybersecurity firm Barracuda from Thoma Bravo, sources...

KKR announces plans to buy cybersecurity firm Barracuda from Thoma Bravo, sources say, deal worth $4 billion

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April 12 (Reuters) – Investment firm KKR & Co Inc (KKR.N) on Tuesday announced plans to buy cybersecurity firm Barracuda Networks from owner Thoma Bravo, underscoring interest from financial sponsors in the cybersecurity companies. cybersecurity. The announcement, confirming an earlier Reuters report, did not disclose financial terms. Sources who requested anonymity said they valued the California-based company at $4 billion, including debt.

Barracuda manages data security for its customers in the cloud on a subscription basis and was taken private by Thoma Bravo for $1.6 billion in 2017.

Cybersecurity deals have surged in recent months as the pandemic has accelerated the shift to remote working, forcing companies to increase spending in the sector. Russia’s invasion of Ukraine has also led to an upsurge in cyberattacks.

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Thoma Bravo agreed on Monday to buy cybersecurity firm SailPoint Technologies, while Datto, a security solutions provider, was also taken private in a $6.2 billion deal by investors led by Insight Partners.

Reuters reported in February that KKR was considering a sale or initial public offering for Optiv Security Inc, a U.S. distributor and consultant of cybersecurity solutions it controls at a valuation of more than $3 billion, including debt.

The Barracuda deal is expected to be completed by the end of 2022, KKR said on Tuesday.

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

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

JP Morgan acted as financial advisor to Thoma Bravo and Barracuda, while Guggenheim Securities, DBO Partners and Barclays advised KKR.

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Reporting by Chibuike Oguh in New York and Akash Sriram in Bangalore; Written by Anirban Sen and Krystal Hu; Editing by Saumyadeb Chakrabarty, David Holmes, Alexander Smith and Chizu Nomiyama

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