KKR Buys Barracuda Networks For $4B
April 13, 2022
signed a definitive agreement under which KKR’s investment funds will purchase
Barracuda Networks, a leading provider of cloud-first security solutions, from
Thoma Bravo, a leading software investment firm.
Founded in 2003, Barracuda offers a broad suite of cybersecurity solutions
across email protection, application security, network security and data
protection that can be deployed and managed in both cloud and hybrid
environments. The Company focuses on serving small and medium sized enterprises
(SMEs) and has more than 200,000 customers worldwide across a variety of
industries, including education, government, financial services, health care,
retail, consumer goods and manufacturing.
During Thoma Bravo’s ownership, Barracuda expanded and enhanced its product
suite, implemented best-in-class operational processes and successfully executed
a number of strategic acquisitions, which together propelled the Company to
profitable and accelerating growth at over $500mm of revenue and enabled more
customers to comprehensively protect their employees, applications, networks and
data. KKR will provide resources and expertise to further accelerate the
Company’s growth and support its strategic expansion in key areas, including
managed detection and response, extended detection and response, and secure
access service edge technology.
Barracuda will implement KKR's broad-based employee ownership program, which
makes all employees owners in their respective businesses alongside KKR. This
strategy is based on the belief that employee engagement is a key driver in
building stronger companies. Since 2011, KKR has awarded billions of dollars of
total equity value to over 45,000 non-management employees across more than 25
"We believe that with the support of KKR, we will continue to invest in growth
and foster a culture that gives our team the resources and inspiration to
continue to create and deliver the next generation of leading cybersecurity
solutions for our customers and partners," said Hatem Naguib, CEO of Barracuda.
"We are very appreciative of Thoma Bravo’s support and very excited to be
working with KKR on this next phase of Barracuda’s journey."
"We continue to see cybersecurity as a highly attractive sector and are excited
to back a clear leader in the space," said 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."
"Barracuda has built an impressive portfolio of solutions that are helping SMEs
around the world protect their data and address critical security challenges,"
said Bradley Brown, Managing Director at KKR. "We see a tremendous opportunity
for long-term growth as these businesses continue to invest more in
cybersecurity and we look forward to helping Barracuda scale and deliver next
generation products that meet this growing need."
the course of Thoma Bravo’s four-year partnership, Barracuda has solidified its
position as an industry leader in cloud-first cybersecurity software," said Seth
Boro, a Managing Partner at Thoma Bravo. "From multiple acquisitions to backend
improvements, Barracuda has delivered tremendous value to its customers and
"We are proud to have supported Barracuda to innovate and grow its security
solutions portfolio, expand its customer base and achieve considerable
operational improvements and revenue growth," said Chip Virnig, a Partner at
Thoma Bravo. "We look forward to watching Barracuda’s continued success."
The investment in Barracuda builds upon KKR’s experience investing in the
cybersecurity sector globally, with investments including Ping, Cylance,
DarkTrace, ForgeRock, NetSPI and Optiv, among others.
The transaction is anticipated to close by the end of the year, subject to
J.P. Morgan is serving as exclusive financial advisor to Thoma Bravo and
Barracuda. Kirkland & Ellis LLP is serving as legal counsel to Thoma Bravo and
Barracuda. Simpson Thacher & Bartlett LLP is serving as legal counsel to KKR.
Guggenheim Securities, DBO Partners and Barclays are serving as financial
advisors to KKR.