US-based cyber analytics vendor ExtraHop is to become the latest technology company to be swallowed by private equity players.
The collective of Bain Capital Private Equity and Crosspoint Capital Partners will pay US$900 million for the vendor’s network detection and response capabilities, with the deal expected to close over the next few months.
CEO Arif Kareem and co-founders Jesse Rothstein, now chief technology officer, and Raja Mukerji, chief customer officer, will continue at ExtraHop in their respective roles. Rothstein and Mukerji will also remain significant investors in the company
"The company's approach is uniquely positioned to help enterprises defend against the most advanced cyber threats and address the security challenges of multi-cloud environments, enterprise internet of things (IoT), and hybrid workforces,” said Max de Groen, a managing director at Bain Capital Private Equity.
“We are thrilled to join the talented team at ExtraHop, in partnership with Crosspoint Capital, to help accelerate the growth of the business and continue advancements in the art of cyber defence.”
Bain Capital already has previously invested in technology firms such as Blue Coat and Nutanix. Meanwhile, Crosspoint is an investment fund focused on the cyber security, privacy and infrastructure software sectors, with a fund valued at US$1.3 billion.
At the time, Mark Fitzmaurice, vice president of global channels at ExtraHop, said partners were needed to "deliver the visibility, speed and scale enterprise security teams need to rise above the noise of the endless traffic required for digital business".
Last year, ExtraHop also signed up Nextgen as a distributor for Australia and appointed Keith Symons to lead its regional channel sales in Australia in March.