KKR to buy cybersecurity firm Barracuda in $4 bn deal

KKR announced it will buy cybersecurity firm Barracuda Networks from its private equity owner Thoma Bravo. Media reports said the value of the deal will be around $4 billion, including debt.
Barracuda Networks managementCalifornia-based Barracuda, which manages the data security of its customers over the cloud on a subscription basis, was taken private by Thoma Bravo in 2017, Reuters news report said.

Thoma Bravo took Barracuda private in 2017 in a deal valued at $1.6 billion, four years after it went public. Barracuda has since grown into a business that generates over $500 million in annual revenue, KKR said. It has also made a series of acquisitions, including buying extended detection and response service SKOUT Cybersecurity and zero-trust access provider Fyde.

The Barracuda deal is set to close by the end of 2022, KKR said on Tuesday. KKR, which has $471 billion of assets under management, is a prolific investor in cybersecurity companies. Some of its investments include ForgeRock, Ping, Cylance and DarkTrace.

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

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

KKR is also exploring a sale or an initial public offering for Optiv Security, a cybersecurity solutions distributor and consultant it controls at a valuation of more than $3 billion, including debt.

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