Cloud Security Firm Barracuda Going Private For $1.6B

In an all-cash exchange, cloud-security and firewall company Barracuda announced Monday it agreed to be acquired by private-equity firm Thoma Bravo, LLC for a total of $1.6 billion, expected be finalized by Feb. 28, 2018.

Founded in 2003, Barracuda began as a spam and virus firewall developer, and has evolved over the last 14 years into a web, cloud, and disaster recovery offering. The company went public with its IPO in 2013.

“Barracuda is a proven industry leader, consistently bringing powerful, comprehensive solutions to customers in an increasingly prevalent, hostile, and complex threat environment,” said Seth Boro, a managing partner with Thoma Bravo in a statement. “We believe that Barracuda is at the forefront of innovation in several highly strategic areas of the cybersecurity market and are excited to be the company’s partner in the next phase of its growth.”

There’s no time like the present for cloud security in general. As previously reported by Enterprise Mobility Exchange, cloud-based security is seeing a market growth of 21% CAGR in 2017, pointing to email security, web security, and Identity and Access Management (IAM) as the top-three cloud priorities.

See related: Why Is Cloud-Based Security Booming?

Additionally, cloud is still regarded as a key pillar and main driver of digital transformation, now that organizations are using for more than just storage centers of data. Whether it’s public or private, cloud offerings span a variety of uses and architectures, now including the multi-cloud, which lends the ability to spread information and workload across a variety of providers who may specialize in different offerings.

Digital transformation as a whole is set to see massive market growth in the next half decade, with an expected CAGR of 19.1% now through 2022, rising from $205.99 billion to $493.39 billion in that time period. As part of that growth, cloud use will see the highest growth rate.

See related: Cloud Strategy Streamlined: Optimizing Enterprise Options

This isn’t the first foray into tech by Thoma Bravo. The private equity firm claims companies to its portfolio that include Flexera, Compuware, Blue Coat, Riverbed, and Qlik.

Barracuda selling itself to Thoma Bravo comes at the end of a positive month for the vendor, which was named Cyber Security Vendor of the Year by Computer Retail News (CRN) earlier in November.