Private equity investment company Thoma Bravo has announced that it is acquiring next-generation application security testing (AST) company Veracode from Broadcom for $950 million in cash. Veracode’s software-as-a-service platform and integrated solutions assist security teams and software developers in finding and fixing security-related defects throughout the software development lifecycle. This deal is expected to close in the fourth quarter of 2018.
Veracode’s future operational and product development plans will be backed through Thoma Bravo’s partnership going forward. And through its broad language and technology framework, Veracode’s Application Security Platform manages security risk across an enterprise application portfolio.
“Software security is one of the most consequential issues facing companies as they look to compete in the digital economy. We are proud that our SaaS security platform combines multiple application security testing solutions, helping our customers around the world secure the software powering their companies and enabling them to focus on their core business objectives,” said Sam King in a statement — who is currently an Senior Vice President and General Manager of Veracode and will become the Veracode CEO after the transaction is closed. “Partnering with Thoma Bravo, a proven security software investor, is expected to extend our market reach and further fuel our innovation so that we can offer the broadest software security platform and empower us to accelerate growth — all to allow us to transform the way companies achieve their software security goals.”
Veracode utilizes a wide range of security testing and threat mitigation techniques combined with best practices derived from some of the most innovative application security programs in enterprises around the world.
Currently, Veracode serves more than 2,000 customers across a wide range of sectors. This includes about one-third of the Fortune 100 and more than 20 out of Forbes’ 100 Most Valuable Brands.
“As long-term investors in cybersecurity software, we are impressed with the speed and quality of innovation at Veracode,” added Thoma Bravo managing partner Seth Boro. “Sam King and her team are seasoned, proven operators addressing a critical security problem in application development and delivering best in class products to a rapidly growing customer base for over 10 years. We are excited to be partnering with the Veracode leadership team to build upon this strong foundation and continue to drive innovation for customers.”
Thoma Bravo has a number of other cybersecurity software investments in its portfolio. For example, the company has completed more than 30 total acquisitions of enterprise security companies thus far including Barracuda Networks, BlueCoat Systems, LogRhythm, SailPoint, and SonicWall. Kirkland & Ellis served as Thoma Bravo’s legal advisor for this deal.