AppVision hits the market, Bain and Crosspoint Capital acquire ExtraHop for $900m

AppVision is up for grabs and Bain, Crosspoint bet on ExtraHop.

Happy Tuesday, readers!

In today’s round-up, we’ve got updates on more than one deal (or brewing deal) in the popular cybersecurity sector. To start, VC-backed AppVision is on the hunt for a PE-backed or pure-play strategic buyer as its founders ready for retirement.

Founded in 2015, AppVision, offers a SaaS solution called HackGuard to app developers that detects threats. The company, which is being advised by mid-market investment bank Berkery Noyes, launched a sale process about two months ago, sources familiar with the situation told PE Hub.

The process is targeting PE firms with cybersecurity companies in their portfolio. That includes players like ABS Capital Partners‘ GuidePoint Security, BlackRock-backed Lookout, Clearlake Capital Group’s Ivanti, as well as One Equity Partners-backed Verimatrix, one source said.

“They would [mainly] buy it for the intellectual property rights,” said the source, referring to potential strategic buyers or portfolio companies looking for tuck-ins.

Headquarted in Tampa, Florida, AppVision provides clients with information about end-user devices, operating environment and demographics. It also shows the geographic distribution of all the app installations.

“They [executives] are looking to exit because they don’t want to spend one to two years developing the infrastructure and then go out into the sales cycle; it’s basically to sell it now or wait for three years and they don’t want to wait,” the source said.

Check out my full report on PE Hub.

In large-scale cybersecurity news… Bain Capital and Crosspoint Capital Partners said this morning they are buying a Seattle-based cybersecurity company called ExtraHop.
The $900 million investment comes amid heightened concerns of security as workloads continue shifting to the cloud.

ExtraHop – one of the top three players in network detection and response space – is among the first investments for the Crosspoint Capital Fund I. The first-time fund, which closed its debut pool on $1.3 billion in April, is focused on cybersecurity, privacy, and infrastructure software sectors.

Crosspoint, formed by veteran tech CEO Greg Clark, brings a heavy operational focus to its investment strategy, a characteristic that helped it attract LP attention at a time when many investors were eschewing new managers. The firm’s debut tally makes it one of the largest first-time tech funds ever raised, Buyouts wrote in April.

ExtraHop CEO Arif Kareem and co-founders Jesse Rothstein, chief technology officer, and Raja Mukerji, chief customer officer, will continue in their respective roles. Rothstein and Mukerji will also remain significant investors in the Company, according to the press release.

Read PE Hub’s brief for more on ExtraHop

That’s it for me! Have a great week ahead, and keep on hitting me up with tips, ideas or feedback at karishma.v@peimedia.com