The Carlyle Group expects to generate a total return of 3.5x its equity investment on the sale of NetMotion, selling the provider of connectivity and security software after a five-year hold.
Absolute Software, a publicly-traded provider of endpoint-centric security solutions, is set to buy NetMotion for $340 million in cash, a Wednesday announcement revealed.
Net Motion, based in Seattle, is a remote secure access platform that combines security, visibility and policy management.
The deal, which has not yet closed, concludes an Evercore-run sale process, as initially reported by PE Hub in January. Sources said then that NetMotion generates around $15 million in EBITDA and around $60 million in revenue.
Based on the $340 million price tag, that implies Absolute valued the company at nearly 23x EBITDA.
Carlyle’s investment dates to August 2016, when the firm acquired NetMotion from Clearlake Capital.
The investment was made through Carlyle Europe Technology Partners III, a €657 million fund focused on European technology, media and telecommunications companies, and Carlyle US Equity Opportunity Fund II, a $2.4 billion vehicle that targets US mid-market buyout investments.
The addition of NetMotion is set to benefit Absolute’s strategic positioning, according to the news release. That includes strengthening its overall competitive position in the ‘work-from-anywhere’ era, delivering enhanced and in-demand data for visibility to the remote worker, and securing a highly-relevant position in mobile market.
Carlyle Group declined to comment.