Barracuda Networks changes hands with purchase by global investment firm KKR

KKR is taking over from Thoma Bravo.
Written by Charlie Osborne, Contributing Writer

Barracuda Networks has been acquired by KKR, an investment outfit taking the company over from past owner Thoma Bravo.

Founded in 2003, Barracuda is the developer of cybersecurity solutions, including email protection, app and cloud defenses, data management, and network security. Products include Secure Access Service Edge (SASE) offerings, threat detection and response, and data inspection.

The company caters to approximately 200,000 customers worldwide and focuses on small to medium-sized businesses.

It appears that the cybersecurity firm recently captured the interest of KKR, an investment company that markets itself as offering "alternative asset management." The funds managed by KKR include hedge funds, private equity, credit, and real-world assets.

The acquisition was announced on April 12.

Private equity firm Thoma Bravo purchased Barracuda in 2017 for $1.6 billion. At the time, the sale was intended to increase Barracuda's growth and maximize shareholder value. Four years after being listed on the NYSE, Barracuda (CUDA) then went private.

The financial terms of the deal have not been disclosed. However, the companies say that since Thoma Bravo's acquisition, Barracuda has enjoyed growth at "over $500 million" in revenue.

Reuters reports that the acquisition is worth approximately $4 billion, including debt.

KKR says that Barracuda's growth is still a priority and the investment outfit will support its expansion in areas including detection and response and SASE.

"We continue to see cybersecurity as a highly attractive sector and are excited to back a clear leader in the space," commented John Park, Head of Americas Technology Private Equity at KKR. "Given its proven track record of growth and innovation, we believe that Barracuda has the right team and model to capture business in this growing market."

The transaction is expected to close by the end of 2022, subject to customary conditions. 

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