N-able exploring sale with Barracuda Networks as one possible suitor - report

One such company reportedly eyeing N-able is Campbell, California-based cybersecurity vendor Barracuda Networks. Barracuda is owned by private equity firm KKR

N-able is exploring a possible sale after "attracting acquisition interest," according to a report from Reuters.

Sources familiar with the matter told Reuters that the Burlington, Mass.-based software vendor is participating in a sale process that attracts private equity firms.

N-able did not respond to multiple requests for comment when reached by CRN US.

One such company reportedly eyeing N-able is Campbell, California-based cybersecurity company Barracuda Networks, according to Reuters. Barracuda is owned by PE firm KKR after being acquired by PE firm Thomas Bravo for about $4bn in 2022.

A spokesperson for Barracuda Networks declined to comment. KKR did not immediately respond to requests for comment.

John Holland, managing director of Corporate Finance Associates, said there are many reasons why a company might go private.

"The administrative burden of complying with federal securities regulations and reporting requirements can be very costly," Holland told CRN in an email.

"Large companies can afford that expense, but relatively small companies cannot afford that expense. Another reason is that sometimes private equity firms see a strategic value in a business that exceeds the value that the public market sees.

"For example, the private equity firm might view a particular business as being an ideal, synergistic match to one of the companies that are owned by the private equity firm."

In 2021, N-able went public after spinning out from software firm SolarWinds, which had been acquired by Silver Lake and Thomas Bravo for $4.5bn in 2016.

N-able, which has a market value of about $2.5bn, reported its Q1 2024 earnings earlier this month with a 14 per cent revenue increase year-over-year.

"It was a strong start to the year," N‑able president and CEO John Pagliuca, said in the earnings call. "We saw broad-based demand across our growing software stack and advanced important initiatives across the business.

"Our MSP customers face significant pain points managing increasingly complex IT estates for their small and medium enterprise customers. We believe our multi-product platform is situated to solve these pain points and help MSPs grow their businesses.

"We aim to be the vendor of choice for MSPs everywhere and are eager to continue building on the results we delivered in the first quarter."

For its first quarter, the company reported a total revenue of $113.7m, representing zero per cent year-over-year growth, or 13.7 per cent year-over-year growth on a constant currency basis.

N-able stock rose almost 10 per cent to $13.83 per share in Wednesday trading.