Cybersecurity company Nyotron is seeking a private equity buyer, three sources familiar with the process told PE Hub.
Nyotron is accepting first-round bids, the sources said.
Berkery Noyes and Drexel Hamilton are advising the company on its sale process, the sources said.
Nyotron first came to market earlier this year and targeted strategic buyers, but paused the process when the covid-19 pandemic hit, the people said. Now, Nyotron has returned to the auction block, opening up the process to include private equity-backed companies as well, the people said.
Nyotron, based in Santa Clara, California, offers security tools for businesses to fight malicious cyber-attacks and build secure IT infrastructure. The company is run by the professional management team, the sources said.
The company produces south of $10 million in revenue, the sources familiar said. A potential transaction could value Nyotron at a mid single-digit revenue multiple, they said.
Prior to the coronavirus-fueled economic downturn, Nyotron was growing annual recurring revenue at a more than 500 percent rate, according to sources. Annual recurring revenue is still projected to grow upward of 100 percent in 2020, accounting for current and anticipated covid-19 impacts, they said.
Despite the slowdown in private equity deal-making amid the pandemic, some deals are still getting done.
Earlier this week, for example, Webster Equity Partners agreed to make an equity investment in GI practice group Gastro One, sources familiar told PE Hub. TSG Consumer also recently closed its majority acquisition of Pathway Vet Alliance, joining the vet care company’s existing backer, Morgan Stanley Capital Partners.
Elsewhere, Pine Island Capital Partners sealed its first deal, partnering with Bain Capital to invest in Precinmac, a manufacturing company deemed insulated from economic volatility.
Drexel Hamilton declined to comment. Nyotron did not return PE Hub’s request for comment.
Berkery Noyes confirmed that Nyotron is in a sale process, but declined to comment beyond that.
Action Item: Reach out to Todd Rinaldo, the banker on the process, at firstname.lastname@example.org.