KKR & Co Inc. said Tuesday that it plans to buy Barracuda Networks from its owner, private equity firm Thom Bravo. The press release, while confirming earlier Reuters reports on the matter, did not disclose the financial terms of the transaction. According to Reuters, the deal will value California-based Barracuda Networks at about $4 billion, including debt.
The surge in the number and value of deals in the cybersecurity sector is mainly due to the acceleration of the spread of remote working as a result of the pandemic. Also, Russia’s invasion of Ukraine has led to an increase in cyberattacks. Thus, this past Monday, Thoma Bravo agreed to buy cybersecurity firm SailPoint Technologies, while security solutions provider Datto was also acquired by investors led by Insight Partners in a private deal worth $6.2 billion.
Founded in 2003, Barracuda manages its customers’ data security in the cloud on a subscription basis, providing a range of services including email protection, cloud software and security, network security and data protection. The company was acquired by Thom Bravo in 2017, four years after going public. Since then, Barracuda has grown into a company that generates more than $500 million in annual revenue. The company has also made a number of acquisitions, including buying extended detection and response service SKOUT Cybersecurity and zero-trust access provider Fyde.
The Barracuda deal is expected to close by the end of 2022, KKR reported Tuesday. KKR, which manages $471 billion in assets, is an active investor in cybersecurity companies. Some of its investments include ForgeRock, Ping, Cylance and DarkTrace.
J.P. Morgan served as financial advisor to Thom Bravo and Barracuda, while Guggenheim Securities, DBO Partners and Barclays advised KKR.