Blue Coat to be acquired by Bain Capital
Date: Wed, 04/01/2015 - 12:23
Gregory S. Clark, chief executive officer, Blue Coat Systems, Inc.
Image credited to Blue Coat Systems, Inc.
Blue Coat Systems, Inc., a market leader in enterprise security solutions to protect enterprises against even the most advanced threats, announced that it has entered into a definitive agreement to be acquired by funds advised by Bain Capital, one of the world’s foremost private investment firms. The company is being acquired from Thoma Bravo, LLC in an all-cash transaction valued at approximately $2.4 billion.
During the past three years, Blue Coat has experienced strong market share and revenue growth in its major product lines and currently counts 80 percent of the Fortune 500 as customers. The company has also made several successful strategic acquisitions extending their solutions to the advanced threat defense, security analytics and encrypted traffic management spaces. Blue Coat offers an integrated portfolio of products that lead the industry in effectiveness in stopping today’s threats and those products have become the de facto standard for many of the Fortune Global 2000. Blue Coat has also built the largest global cloud security infrastructure, which integrates with its on premise solutions to offer hybrid defense, anytime, anywhere.
“Blue Coat has differentiated products for protecting enterprises from even the most sophisticated threats, and we are proud to be a foundational part of the security architecture for the world’s largest enterprises. The world’s most trusted brands use Blue Coat, and the acquisition by Bain Capital sets us on the trajectory to further grow our portfolio, better serve our customers and help us prepare to return to the public markets,” said Gregory S. Clark, chief executive officer, Blue Coat Systems, Inc. “Bain Capital has a long history of accelerating growth, and I look forward to partnering with them in our journey to be one of the top performing security companies in the world.”
“We are excited by the opportunity to work with Blue Coat's world-class management team to grow the business organically and through acquisitions, and to ultimately return the company to the public markets,” said David Humphrey, a managing director at Bain Capital. “We are very impressed with the profitable growth the company has demonstrated and believe strongly in the future growth of the cyber security market and Blue Coat’s position in this important sector.”
“We are extremely proud of our partnership with Blue Coat, which has achieved substantial growth since going private in 2012, while positioning itself as a leading next generation security company,” said Seth Boro, a managing partner at Thoma Bravo. “We look forward to watching Blue Coat continue to grow with its new investment partner.”
The transaction is subject to customary closing conditions, including requisite regulatory approvals, and the transaction is expected to close during the first half of 2015.
Goldman, Sachs & Co. is serving as financial advisor to Blue Coat. Wilson Sonsini Goodrich & Rosati is acting as legal advisor to Blue Coat. Jefferies Finance LLC is providing the financing commitments, and Jefferies LLC is acting as sole financial advisor to Bain Capital. Ropes & Gray LLP is acting as legal counsel, and PwC LLP is serving as accounting advisor to Bain Capital.