Sunstone Partners has made an undisclosed investment in Minnesota-based NetSPI, a provider of application and network security testing solutions. Mooreland Partners provided financial advice to NetSPI on the transaction.
NEW YORK, April 21, 2017 /PRNewswire/ — Mooreland Partners (http://www.moorelandpartners.com), the leading independent investment bank providing M&A and private capital advisory services to the global technology industry, today announced that it acted as the exclusive financial advisor to NetSPI on its equity investment from Sunstone Partners, a private equity firm focused on growth equity investments and majority buyouts in technology businesses.
Based in Minnesota, NetSPI is the leading provider of application and network security testing solutions that support organizations in scaling and operationalizing their threat and vulnerability management programs. The solution portfolio includes both security testing services and a software platform, CorrelatedVM®, trusted by many of the Fortune 250. The Company has operated profitably every year since its founding in 2001, and this transaction marks the first institutional capital it has ever raised.
“Our clients are under intense pressure from business, regulatory, and governance perspectives to partner with cybersecurity experts to increase their security posture to safeguard their organization against the volatile and ever-evolving threat landscape,” said Deke George, NetSPI’s Co-Founder & CEO. “We are looking forward to our partnership with Sunstone Partners given their team’s successful track record and experience in cybersecurity.”
MarketandMarkets research projects the penetration testing market to grow from $595 million in 2016 to over $1.7 billion by 2021. “Given the increased complexity in identifying and remediating critical vulnerabilities and the growing shortage of security talent, NetSPI is well positioned to capitalize on the emerging opportunities for Security as a Service testing solutions,” said Scot Sedlacek, Managing Director, Mooreland Partners. Brad Topchik, Managing Director, Mooreland Partners added “NetSPI is at a natural point in its evolution to seek a partner that can help accelerate growth initiatives. Sunstone has an outstanding track record in the security segment and will be an ideal partner for NetSPI.” Mooreland is an active advisor in the information security space, having completed M&A and capital raising transactions for eight clients in the past 24 months.
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