Apax Funds to acquire cyber security provider Coalfire

A piggy bank looking at stacks of pound coins

Apax Partners, a global private equity advisory firm, has announced it has agreed to acquire cyber security provider Coalfire from The Carlyle Group and The Chertoff Group.

Financial terms of the deal were not disclosed but the company said the transaction is expected to be completed in 2020, subject to regulatory approval.

Founded in 2001, Coalfire operates as a cyber security advisor that helps organisations avert threats, close gaps and effectively manage cyber risk. By providing advice and services across the entire cybersecurity lifecycle, the firm helps clients develop scalable programs to improve their security setup.

Rohan Haldea, partner at Apax Partners, said investment from Apax Funds will support Coalfire in accelerating growth, with the firm “well-positioned” due to cybersecurity trends and the vision of its strong management team.

“The Apax Funds’ investment will assist the company in particular by increasing Coalfire’s investment in technology; continuing to invest in thought leadership, especially with respect to securing cloud environments; and deepening capabilities across assurance standards while scaling its penetration testing and cyber risk services business,” Haldea said.

“We look forward to working with the Coalfire team as they broaden their services to support customers in navigating an environment that is characterized by an increasing range of cybersecurity challenges,” said Rohan Haldea, partner at Apax Partners.

Coalfire already has more than 1,800 government and commercial clients and works with seven of the top ten SaaS providers. Its staff-base of more than 730 employees operate from 11 locations across the US and UK.

The Carlyle Group and The Chertoff Group acquired majority ownership of the business back in 2015, with Coalfire then going on to purchase Veris Group two years later.

“We are thrilled with our new partnership with Apax, which will help drive our growth plans while continuing our commitment to our customers, people, and core values,” commented Tom McAndrew, Coalfire CEO.

“The leadership, support, and investment provided by Carlyle, Chertoff, and Baird Capital have been instrumental in our success over the last four years, and we are excited to begin this new chapter.”

William Blair served as financial advisor and Latham & Watkins served as legal advisor to Coalfire. PwC served as accounting advisor to Carlyle. Kirkland & Ellis LLP served as legal counsel to Apax Funds.

Daniel Todd

Dan is a freelance writer and regular contributor to ChannelPro, covering the latest news stories across the IT, technology, and channel landscapes. Topics regularly cover cloud technologies, cyber security, software and operating system guides, and the latest mergers and acquisitions.

A journalism graduate from Leeds Beckett University, he combines a passion for the written word with a keen interest in the latest technology and its influence in an increasingly connected world.

He started writing for ChannelPro back in 2016, focusing on a mixture of news and technology guides, before becoming a regular contributor to ITPro. Elsewhere, he has previously written news and features across a range of other topics, including sport, music, and general news.