To Serve and Protect the Network: PE and Network Security
April 11, 2014
News of the Heartbleed bug's dangerous ubiquity has been racing around the Internet, proving a reminder once more of how one small flaw in encryption keys can make a visit to a standard website potentially dangerous. It also serves as a reminder that in the current era of increased online exposure, network security companies are potentially sound investments. According to the PitchBook Platform, PE firms agree: they've invested in 129 U.S.-based network and cyber security companies since the start of 2008, with investment activity increasing from a low of 17 deals in 2009 to 28 deals last year. Other highlights from the data include:
• Most active investor: Thoma Bravo (12 deals)
• Biggest deal: $1.3 billion buyout of Blue Coat Systems in 2012
• The number of add-ons increased from five in 2009 to 12 each in 2011 and 2013.
• Deal flow may be slowing: 2014's only seen three deals in the space thus far.
• The U.S. Northeast, West Coast and South capture the lion's share of activity, with 20.3%, 18.2% and 16.1%, respectively.