Vector Capital has made a fresh equity investment in WatchGuard to become the company’s majority shareholder, snapping up shares previously owned by Francisco Partners and other co-investors.
The private equity firm has held joint ownership of WatchGuard for more than a decade, overseeing the business transform from a network security vendor to a fully-fledged cyber security platform provider.
The company’s Unified Security Platform is now, in fact, used by more than 17,000 managed service providers (MSPs) to protect the environments, users and networks of more than 250,000 businesses worldwide.
WatchGuard CEO Prakash Panjwani said the move was a sign of Vector’s belief in the company’s portfolio, partners, employees and vision.
“This transaction is a testament to WatchGuard’s current success and the opportunity ahead,” he said. “We believe Vector is well-positioned to further accelerate WatchGuard’s growth strategy while preserving our company culture and commitment to security delivery through the MSP community.”
Looking forward, WatchGuard said it’ll continue to invest in critical areas, including cloud transformation, secure access service edge (SASE), extended detection and response (XDR), managed detection and response (MDR), as well as further innovation in security automation and simplification.
Sandy Gill, managing director of Vector Capital, highlighted the importance of a bespoke platform that’s built to suit MSP needs.
“MSPs represent the future of security delivery, but to be successful, they need a bespoke platform built for their needs,” he said. “WatchGuard is uniquely positioned to lead the market in enabling those MSPs with its Unified Security Platform.
RELATED RESOURCE
Ransomware and Microsoft 365 for business
What you need to know about reducing ransomware risk
“We are excited to further invest both organically and via acquisitions in the company’s mission to deliver security-focused MSPs one vendor, one platform and one vision to build their business upon.”
Alex Slusky, founder, managing director and chief investment officer of Vector Capital, added: “We are proud of the foundation of success we’ve built with WatchGuard’s management team and look forward to fuelling the next phase of growth and transformation for the company.”
The transaction is expected to close by the end of the third quarter of 2022, subject to customary closing conditions. Financial terms were not disclosed.
-
What does modern security success look like for financial services?Sponsored As financial institutions grapple with evolving cyber threats, intensifying regulations, and the limitations of ageing IT infrastructure, the need for a resilient and forward-thinking security strategy has never been greater
-
Yes, legal AI. But what can you actually do with it? Let’s take a look…Sponsored Legal AI is a knowledge multiplier that can accelerate research, sharpen insights, and organize information, provided legal teams have confidence in its transparent and auditable application
-
IDC InfoBrief: Sustainability doesn’t need to be all stick and no carrotwhitepaper CIOs are facing two conflicting strategic imperatives
-
Check Point acquires Perimeter 81 in push to meet SASE demandNews The half-billion dollar deal greatly expands Check Point’s service edge offering
-
What is the Network and Information Systems 2 (NIS2) Directive?In-depth Everything your business needs to understand about the implications of the new EU regulations and how it differs from the UK's own updated NIS rules
-
The value of secure server infrastructure in the digital-first eraWhitepaper Why is infrastructure security important in the digital-first era?
-
HPE accelerates network security drive with Axis Security acquisitionNews The acquisition builds on the recent purchase of Italian private cellular technology provider, Athonet
-
Information security vs cyber security vs network security: What are the differences?In-depth A guide to the essential differences between information, network, and cyber security and the basic tenets of each
-
Gov to force through tough telecoms regulations to boost network securityNews Regulator Ofcom will have powers to monitor, investigate and fine providers that fail to meet the new requirements
-
How to become a cyber security expertIn-depth With cyber security professionals in high demand, we explore the steps people need to take to pursue a successful career in this industry
