Insight Partners is preparing to sell Thycotic, an IT security and Privileged Access Management (PAM) software provider, sources familiar with the situation told PE Hub.
Evercore is advising the company on its sale process, which is currently in its early stages, the sources said.
Thycotic, based in Washington, DC, is an IT security and password management technology provider that aims to empower companies to remove the complexities associated with proper access control and management of privileged accounts.
Thycotic’s Secret Server product is a fully featured Privileged Access Management (PAM) solution available both on premise and in the cloud. It empowers security and IT ops teams to secure and manage all types of privileged accounts and offers the fastest time to value of any PAM solution, Thycotic says on its website.
Thycotic has 12,500 customers, 25 of which are in the Fortune 100, including brands like Cisco, BP, Yale, Salesforce, Honda, ESPN, and others.
Thycotic is the fastest-growing company in the PAM market, growing 40 percent year-over-year, according to one of the sources.
The company generates $120 million in revenue with $100 million of it annual recurring, the sources said. Thycotic is nearly breakeven on EBITDA, they said.
The IT security provider competes with a few other PE-backed businesses in the modern privileged access management (PAM) space, which is experiencing growth and an influx of private capital.
In January, TPG acquired Centrify, provider of modern privileged access management (PAM) technology, from Thoma Bravo.
Francisco Partners has also been building out its own PAM platform under the name BeyondTrust Corporation. In 2018, Francisco merged several PAM software providers, including BeyondTrust, Bomgar, Avecto, and Lieberman Software, to create a platform of scale in the space.
Insight Partners and Evercore declined to comment, while Thycotic didn’t immediately return PE Hub‘s request for comment.