September 4, 2014
(Editor’s Note: This post is an excerpt from an article appearing in Practitioner Insights on WestlawNext)
With the recent cyberattack that led to the leak of private celebrity photos, it is clear that cybersecurity is a significant concern in today’s virtual, cloud-based community. The recently announced acquisition of BeyondTrust by private equity company Veritas Capital highlights that companies offering effective and efficient means of protection from data breaches and cyber-attacks are more vital than ever.
BeyondTrust is a provider of privileged account management and vulnerability management software solutions “that deliver the visibility necessary to reduce IT security risks.” The company’s software allows its customers, made up of companies listed on the Dow Jones Industrial Average, to “address both internal and external threats, while making every device – physical, virtual, mobile and cloud – as secure as possible.”
In announcing the acquisition, Hugh Evans, a partner at Veritas, acknowledged the importance of companies like BeyondTrust in the dominant cybersecurity market. Evans stated that he believes the market will be affected by “increasing regulatory/compliance requirements, high profile breaches and complexity of the IT environment.”
A managing director of Insight Venture Partners, another private equity firm, seems to agree with the purchase, stating that Veritas was “getting a terrific asset in a critical market space.”
BeyondTrust and Veritas highlighted the continued demand for cybersecurity companies, noting that the market for BeyondTrust’s services is expected to increase by approximately 30 percent over the next few years. Veritas believes that “BeyondTrust is well positioned to address anticipated market demands,” as it has experienced considerable growth, with its revenue compound annual growth rate increasing more than 20 percent since 2008.