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By VARINDIA    2018-11-08

Thoma Bravo takes control of Veracode

Broadcom is selling application security testing major Veracode for $950 million in a pure cash deal to private equity firm Thoma Bravo. Broadcom gained Veracode as a part of its acquisition of CA Technologies. With this the application security firm Veracode is changing ownership once again.


CA is essentially a company into software and provides services for everything from IT management to app development to cybersecurity. Way back in 2017, Veracode agreed to sell to CA Technologies for $614 million in cash. The company has been one of the stalwarts of the local cybersecurity cluster and hunts for vulnerabilities in software by scanning it throughout the development lifecycle. Now that the CA acquisition has closed, Broadcom has decided to move the Veracode business to private equity investor Thoma Bravo.


Thoma Bravo, an investment firm has been a long time investo into software, especially cybersecurity. The firm acquired Blue Coat Systems in 2012 for $1.6 billion, before selling the Sunnyvale, CA-based Web security company in 2015 to Bain Capital for $2.4 billion (CA-based Symantec said it would pay $4.6 billion to buy Blue Coat a year later). On July 2, it took a majority stake in next-generation security information and event management (SIEM) vendor LogRhythm. On August 15, Thoma Bravo became the majority investor in identity and access management (IAM) vendor Centrify. Even more recently, on October 10, Thoma Bravo announced plans to acquire Web Application Firewall provider Imperva in a deal valued at $2.1 billion.


Thoma also bought computer network manager SolarWinds with Silver Lake Partners in 2015 for $4.5 billion. SolarWinds raised $375 million in an initial public offering last month.


Broadcom's acquisition of CA Technologies is not by choice but post, followed by a failed takeover attempt by Broadcom of chipmaker giant Qualcomm, which President Trump denied in March, citing national security concerns for the $100 billion-plus proposed acquisition.


CA Technologies acquired Veracode in March 2017. The idea behind the Veracode purchase was to blend application development and security. Veracode, now a division of Broadcom via the CA Technologies purchase, offers a software-as-a-service platform to find and fix security defects. CA Technologies initially acquired Veracode for $614 million.


According to a statement, the deal is expected to close in the fourth quarter. Sam King, current general manager of Veracode, will become CEO of the company when the Thoma Bravo purchase closes. Thoma Bravo has completed more than 30 acquisitions in enterprise security including BlueCoat Systems, Barracuda Networks and SonicWall.


On November 5th, Thoma Bravo announced that it is acquiring Veracode in an all-cash deal for $950 million. Thoma Brava is purchasing Veracode from Broadcom, which on November 5 closed its $18.9 billion acquisition of CA, which was announced on July 11. The $950 million price tag is a 55 percent gain over the $614 million that CA Technologies paid to acquire Veracode in March 2017.


Now, Veracode has once again become an independent AppSec pure-play company. This combined with the expertise and experience that Thoma Bravo has in cyber-security gives it the ability to accelerate its growth and product innovation, while continuing to nurture the unique culture it always valued. Thoma Bravo has been extremely active in the cybersecurity space this year.


Thoma Bravo also holds a majority interest in global SSL Certificate Authority vendor Digicert, privileged access management (PAM) vendor Sailpoint and cyber-security vendor McAfee.

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