Member Article

Private equity firm TA Associates completes majority investment in cybersecurity firm Netwrix to help mid-market businesses protect assets

Global growth private equity firm TA Associates, Which focuses on technology, healthcare, financial services, consumer and business services, has announced a completed majority investment in Netwrix, a cybersecurity vendor that specialises in protecting data. TA, which has invested in more than 500 companies around the world, together with the Netwrix executive management team, plan to accelerate Netwrix’s growth as the company aims to expand its portfolio of data security solutions to its customers globally.

Members of Netwrix senior management and existing Netwrix investor Updata Partners will invest alongside TA, and will maintain a significant equity interest in the company. While financial terms of the transaction were not disclosed, TA invests in profitable, growing companies with opportunities for sustained growth. TA employs a long-term approach, having raised $33.5 billion in capital since its founding in 1968 and is committing to new investments across the globe at the pace of over $2 billion per year.

“Netwrix is thrilled to be working alongside TA as we enter our next phase of growth,” said Steve Dickson, chief executive officer of Netwrix. “The partnership with TA will provide Netwrix access to the firm’s global add-on acquisition origination and integration capabilities and deep experience in the security and horizontal application software markets, which we believe will position us for substantial organic and inorganic growth.”

While able to scale to the unique needs of large enterprises, Netwrix’s business model is targeted at organisations with 500 to 10,000 employees. This underserved segment is in need of easy-to-use data security solutions to address growing security and privacy concerns. Until recently, governmental regulations, such as Sarbanes-Oxley, applied only to larger enterprises. However, with the growing number of privacy regulations, such as the GDPR and the CCPA, organisations of all sizes, including mid-market businesses, must take data security seriously.

“Given the ongoing growth in the global data security market, we see ample new business opportunities for Netwrix,” added Harry Taylor, a managing director at TA Associates. “We are pleased to partner with Netwrix’s management team, alongside Updata Partners, and to collaborate on the company’s continued profitable growth.”

Joining the Netwrix board in conjunction with this transaction are Michael Libert, Harry Taylor and Amit Jain of TA Associates; and independent directors Dan Mayleben, chief executive officer at 2ndWave Software, and Matt Dircks, chief executive officer at BeyondTrust. They join existing board members Jon Seeber of Updata Partners, independent director Brian Turner and Steve Dickson of Netwrix.

This was posted in Bdaily's Members' News section by Netwrix .