Blackstone to buy majority stake in Accuvant

Blackstone has agreed to acquire a majority stake in Accuvant. No financial terms were disclosed. Simpson Thacher & Bartlett and Blackstone Advisory Partners advised Blackstone on the deal. Headquartered in Denver, Accuvant, which is backed by Sverica International, is a provider of information security solutions.

PRESS RELEASE

NEW YORK–(BUSINESS WIRE)–Blackstone (NYSE:BX) today announced that a fund it manages on behalf of its private equity investors has entered into a definitive agreement to acquire a majority stake in Accuvant Inc., a leader in information security solutions and services. Accuvant management and existing shareholder Sverica International LLC will invest alongside Blackstone in the transaction. Blackstone’s investment will enable Accuvant to accelerate its pace of expansion and enable the management team to deploy additional capital and resources for a broader roll-out of its product- and service-based solution offerings.
This investment leverages Blackstone’s extensive technology experience and capabilities, and also significantly broadens its presence in the information-security sector. The increased prevalence and complexity of cyber-attacks has made information security a Board-level issue at corporations across the world. Blackstone has committed significant time and resources to evaluating the industry landscape and key vendors in the market.
Accuvant is one of several tech investments that Blackstone’s private equity funds have made in the technology sector over the last twelve months. Other recent investments include: Pactera Technology International Ltd, China’s largest IT outsourcing company; and Kronos, a leading global provider of workforce management software and services. Separately, Blackstone has made small minority investments in emerging security companies, including Carbon Black / Bit9, iSIGHT Partners, Secure Mentem, WatchDox, and Cylance.
Accuvant provides its enterprise customers with security software and hardware manufactured by its best-in-class technology partners and, via its security services segments, offers implementation, consulting, 24×7 monitoring / managed services, and world-class post-intrusion detection and remediation services. Accuvant’s experienced account managers and engineers differentiate themselves with their high-touch customer service model, holistic view of their client’s security needs and deeply specialized technical knowledge, which together make Accuvant a trusted advisor to its clients on their information security needs.
Dave Johnson, Senior Managing Director in Blackstone’s Private Equity Group, said, “With this investment, we are excited to build upon Blackstone’s growing information security expertise as the sector becomes increasingly relevant across industries. Our investment will provide Accuvant’s experienced team with necessary resources as it continues to establish a reputation for excellence in the information risk and security space.”
Jay Leek, Senior Vice President in Blackstone’s Innovations and Infrastructure group and Chief Information Security Officer, said, “We are very excited about the strategic value that Accuvant brings to Blackstone and our portfolio companies. This partnership will provide us greater access to their world class security capabilities and talent as we continue to manage the ever increasing threat of information security breaches.”
“We are looking forward to being part of the Blackstone family,” said Dan Burns, Accuvant co-founder and chief executive officer. “Security has transcended everyone and everything – from people to companies to nations. Accuvant has already helped thousands of organizations protect themselves and their customers. But, there’s so much more we can do. This partnership will enable us to accelerate our pace of innovation and expansion, and allow us to deliver new services and solutions that meet the constantly evolving needs of the global and critically important market.”
The transaction is expected to close in April pending relevant regulatory approvals. Simpson Thacher & Bartlett LLP and Blackstone Advisory Partners L.P. served as advisors to Blackstone.
About Accuvant
Accuvant is a leading provider of information security services and solutions serving enterprise-class organizations across North America. The company offers a full suite of service capabilities to help businesses, governments and educational institutions define their security strategies, identify and remediate threats and risks, select and deploy the right technology and achieve operational readiness to protect their organizations from malicious attack. Headquartered in Denver, Colorado, Accuvant has offices across the United States and Canada. Founded in 2002, Accuvant has been named to the Inc. 500|5000 list of fastest growing companies for the last seven consecutive years. For more information about Accuvant, visit Accuvant’s website at www.accuvant.com.
About Blackstone
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds, and multi asset class exposures falling outside of other funds’ mandates. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. .

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