Private equity firm TA Associates has invested in Veracode for $ 2.5 billion, and the application security software company is now looking to make acquisitions.
The former majority owner of Veracode-private equity firm Thoma Bravo-will retain a minority stake in the application security software company, all parties indicated. Quick math revealed that Veracode’s valuation has doubled since November 2018 – when Thoma Bravo acquired Veracode from Broadcom for $ 950 million.
Veracode develops application security testing software tools. Veracode’s 2,600 customers scanned more than 53 trillion lines of code and fixed more than 71 million security flaws, the company asserted.
On the partner front, Vericode in 2021 launched the Veracode Technology Alliance Program (TAP). The program is designed to make “it easier for organizations to implement, manage, and measure their software security programs, reducing friction and speeding up time-to-market. Previous members include Accurics, Imperva , ServiceNow, and ThreadFix, among others.
Veracode is looking for Security Acquisitions
Veracode currently has approximately 725 employees. In the future, Veracode plans to expand both organically and through acquisitions, CEO Sam King indicated in a prepared statement. Expansion efforts include new hires across engineering, product management, marketing, sales, and customer success. King said:
“What we are doing has never been more important. The integration of digital innovation, the complexity of the software supply chain, and the strengthening of the regulatory environment puts robust software security in the spotlight. We are grateful to Thoma Bravo’s collaboration over the past three years and we look forward to our next chapter in the TA.Together, we aim to accelerate our vision to deliver the most comprehensive software security platform that meets the needs of both the development team and security team by enabling them to develop and deliver secure software at the speed that business demands.
We are committed to our mission, strategy, and product vision, and we are excited to partner with TA, which uses its significant experience in investing in enterprise software companies and track record in scaling growth businesses, to accomplish that perspective. We plan to invest in expanding our product portfolio through organic growth and strategic M&A, as well as accelerate the expansion of our global footprint and growth, while maintaining the healthy business fundamentals we have achieved in the past. how many years.
Jason Werlin, a managing director at TA Associates, added:
“TA recognizes the strong market opportunity for Veracode, driven by the need to secure software and educate developers. We believe Veracode’s legacy and continued leadership position, combined with the breadth and depth of its portfolio, uniquely positions the company to drive the next wave of growth in the application security market. TA is excited to partner with the Veracode management team and Thoma Bravo in the next phase of the company’s journey.
Seth Boro, a managing partner at Thoma Bravo, said:
“Over the past three years, Veracode has expanded its platform, expanded its market footprint, and established a clear track record of sustainable innovation. In today’s digital world, cybersecurity solutions are more critical than ever, and Veracode continues to drive innovation while helping solve customers ’most complex security needs. We are extremely proud of what Veracode has achieved under our majority ownership and look forward to continuing to support Veracode as it enters the next phase of its growth in partnership with TA. “
TA Associates: Private Equity and Security Experience
The private equity firm TA Associates is known throughout the software, security and MSP industries. Major investments and/or ownership of the company include:
TA Associates focuses on five industries – technology, healthcare, financial services, consumer services and business. Common investments include profitable, growing companies. The company has raised $ 47.5 billion in capital since its founding in 1968.