Sumeru Equity, Adams Street to sell Cybera

  • First round bids due at the end of month
  • Jefferies is advising Sumeru on the sale
  • Sumeru acquired majority stake in 2015

Sumeru Equity Partners is looking for a buyer for Cybera, three sources familiar with the deal told Buyouts.

First round bids are due at the end of June, the people said. Jefferies is advising Sumeru on the sale process, they said.

Adams Street Partners, which has a minority stake in the company, is also looking to sell down its equity.

Cybera, of Franklin, Tennessee, is a provider of cloud-based security and network services for widely distributed enterprises in industries including retail, hospitality, healthcare, financial services and others. Cybera is focused on helping distributors with managing payment networks and other complex applications in remote locations.

Sumeru acquired a majority stake in Cybera from Adams Street in 2015. As part of that deal, Adams Street, which backed Cybera since 2006, rolled over some equity in the company.

Cybera has generated $50 million in revenue, one source said. The company can sell for an amount between $250 million and $300 million, two people said.

Sumeru Equity Partners is a technology-focused, middle-market private equity firm founded in 2014 by a group of investors and operators from Silver Lake Sumeru, a $1.1 billion fund started in 2007 within Silver Lake.

The firm makes control and minority investments between $25 million and $200 million.

Sumeru currently invests out of Sumeru Equity Partners Fund III. In 2018, the firm set a $600 million target for its third vehicle, according to an SEC filing.

Adams Street manages more than $37 billion of assets across five strategies: primary and secondary private fund investments, co-investments, private credit investments and direct growth equity investments.

The firm’s growth equity arm focuses on investments in healthcare and technology.

Sumeru and Cybera did not respond to a request for comment before press time. Adams Street declined to comment on the process.

Action Item: Ajay Shah, a senior advisor of Sumeru Equity Partners an a member of Cybera’s board of directors, can be reached at ajay.shah@sumeruequity.com or 650-233-4433.