Private equity firm Thoma Bravo has unveiled plans to acquire a majority interest in LogRhythm, in a bid to drive product development across the expanding security market.
While financial terms of the transaction were not disclosed, the agreement is expected to close in the third quarter of 2018, subject to regulatory approvals.
“LogRhythm believes it has found an ideal partner in Thoma Bravo,” LogRhythm chairman, president and CEO, Andy Grolnick, said.
“We feel Thoma Bravo’s cyber security domain expertise and track record of helping companies drive growth and innovation will make this a powerful and productive relationship.”
Specialising in next-generation security information and event management (SIEM), LogRhythm serves more than 2,500 enterprise customers across the world, with clients including NASA, EY and Fujitsu.
From a channel perspective, the vendor works predominantly with resellers, managed service providers and system integrators, while integration with over 750 technology products, leveraging key partnerships with Amazon Web Services (AWS), Cisco, Dell EMC and Microsoft among others.
“Since 2003, LogRhythm has proven its innovation and leadership in the application of automation, analytics and artificial intelligence to solve customers’ advanced threat detection and threat lifecycle management challenges, and achieve security operations workflow efficiency,” LogRhythm CTO, Chris Petersen, added.
“We look forward to working closely with Thoma Bravo to continue our customer-centric approach to innovation, enabling enterprises across the globe to protect themselves from damaging cyber threats.”
With a focus on software and technology-enabled services, Thoma Bravo has partnered with a host of leading vendors in the market, including SonicWall, Hyland Software, Blue Coat Systems, Barracuda Networks and SolarWinds.
“The company’s impressive track record of growth shows the continued demand for LogRhythm’s differentiated offerings,” Thoma Bravo managing partner, Seth Boro, added. “With Thoma Bravo’s investment, we look to further accelerate product innovation and drive continued customer success.”
In addition, LogRhythm launched a general data protection regulation (GDPR) compliance module in early 2018, to better protect personal data and avoid costly fines from this new legislation.
Specifically, fines of up to €20 million or four per cent of an offending organisation’s global annual revenue could result from noncompliance, with the vendor claiming this to be the first fully-integrated security solution for achieving and validating GDPR compliance.
The additional funding is expected to support the vendor’s future operational and product development plans.