Investcorp Sells Stake in Optiv Security to KKR

18 Dec 2016

Bahrain, 18 December 2016 – Investcorp, a global provider and manager of alternative investment products, today confirmed that Optiv Security (“the Company” or “Optiv”), a market-leading provider of end-to-end cyber security solutions, in which Investcorp owns an interest, has signed a definitive agreement under which KKR will acquire a majority stake in Optiv. Optiv is being acquired from a group of private investors, including a private equity fund managed by Blackstone (NYSE: BX), Investcorp and Sverica.  As part of the transaction, Blackstone and Optiv management will maintain a minority interest in the Company. Financial terms of the transaction are not being disclosed.

Investcorp originally invested in Optiv through the acquisition of FishNet Security in November 2012. During Investcorp’s holding period, FishNet Security acquired one company, merged with Accuvant to create Optiv, and subsequently completed three additional acquisitions.  As part of the Optiv merger, Investcorp retained a meaningful minority equity interest in the combined company. Since closing, the newly combined entity has become one of the largest pure-play cyber security providers in the world, over the past three years having served more than 7,500 clients in 76 countries, including 71 of the Fortune 100 and 604 of the Fortune 1000. Today, Optiv serves as the number one information security partner for many of the established and emerging security software vendors and hardware manufacturers. Optiv was named to the 2016 Inc. 5000 list as one of North America’s fastest-growing private companies with a 97 percent three-year growth rate.

Mohammed Al Ardhi, Executive Chairman of Investcorp, stated, “Our track record in identifying companies and industries with significant growth potential has allowed us to expand businesses and enhance their value. The recent sale of Optiv to KKR serves to further emphasize our continued investment momentum in the United States.”

“Investcorp’s acquisition of FishNet Security exemplifies the type of companies and industries where we see significant opportunities in which to invest,” said Dave Tayeh, Head of Corporate Investment North America at Investcorp. “Since Investcorp’s initial acquisition, the business has increased revenue and EBITDA nearly three times through organic growth, the merger that created Optiv and strategic acquisitions, which broadened the scope and scale of the business.  We believe the Company will continue to realize extraordinary growth and are proud to have been part of its development trajectory.”

Over the years, Investcorp has successfully invested in several security related companies. Previous investments include CSIdentity, the technology leader in providing identity theft and fraud protection services; and Sophos, a world leader in providing enterprise-wide anti-virus protection to corporations, governments and academic institutions. In addition to Optiv, the current portfolio includes Securelink, a leading European cyber security infrastructure and managed services provider; and OpSec Security Group, the global leader in anti-counterfeiting technologies, as well as solutions and services for physical and online brand protection.