Barracuda acquired by KKR for reported $4bn

The deal is anticipated to be complete by the end of the year

KKR is set to acquire cloud-first security solutions provider Barracuda in deal that will "accelerate growth" by pushing the company into key security markets.

The global investment firm has signed an agreement to purchase Barracuda from Thoma Bravo in a deal that is anticipated to be complete by the end of the year.

Financial terms have not been disclosed, but Reuters has reported that the deal is worth around $4bn, citing anonymous sources.

Founded in 2003, Barracuda offers cybersecurity solutions across email protection, application security, network security and data protection that can be deployed and managed in both cloud and hybrid environments.

It has more than 200,000 customers worldwide and under the ownership of Thoma Bravo "expanded and enhanced its product suite, implemented best-in-class operational processes and successfully executed a number of strategic acquisitions", a company press release said.

It added that KKR aims to provide resources and expertise "to further accelerate the company's growth and support its strategic expansion in key areas".

This includes managed detection and response, extended detection and response, and secure access service edge technology.

"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."

Following the planned takeover, Barracuda will implement KKR's broad-based employee ownership program, which makes all employees owners in their respective businesses alongside KKR.

John Park, head of Americas technology private equity at KKR, said: "We continue to see cybersecurity as a highly attractive sector and are excited to back a clear leader in the space.

"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."

Thoma Bravo acquired Barracuda in 2017 in a deal valued at $1.6bn and the company's revenue currently exceeds $500m.

Chip Virnig, a partner at Thoma Bravo, said: ""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.

"We look forward to watching Barracuda's continued success."