Apax takes majority stake in Herjavec Group
Managed security services provider with a global footprint is snapped up by private equity player
Consolidation has been a constant feature in the channel over the past couple of decades but, increasingly, deals involve private equity.
Private equity has backed several recent deals, including involvement with the Onceom takeover of Olive Communications, announced yesterday, underlining the sector’s high regard for the channel.
Managed services is an area where investments have been high and funds advised by Apax Partners have added another example to the growing list with a move to acquire a majority stake in MSSP Herjavec Group (HG). The terms of the deal were not disclosed.
Founded in 2003, the firm has established itself as a leading player in the market and following the deal, its founder and CEO, Robert Herjavec, who is a significant stakeholder, will remain at the helm.
The business has outposts in the UK, US, Canada and India, employing more than 300 staff, and has been developing its international business. Apax funds aim to help fuel Herjavec’s geographical expansion plans and invest in the firm’s threat and identity resources.
“Over the past 17 years, HG has remained steadfast in our mission to make enterprises around the world more secure,” said Herjavec. “We have succeeded in that effort by developing an industry-leading 24/7 managed security services practice, by advancing our proprietary IP, by diversifying our offerings to include advisory, managed detection and response, identity and incident response services, and by hiring what I fundamentally believe is the very best team in the world.
“I am excited for this next phase in our growth trajectory as we continue to earn their trust by expanding our localised support models, deepening our managed security services offerings and furthering our platform development to drive incremental automation, efficiency and security return on investment.”
In a letter to staff and partners posted on the firm’s website, Herjavec hinted that additional leadership appointments and partnerships would be announced shortly.
Rohan Haldea, partner at Apax Partners, said the firm was investing into a business that had gained a reputation for providing cyber security protection with high levels of customer service.
“In an increasingly complex cyber security and IT market, where we are seeing ever more sophisticated cyber crime, HG is a trusted partner that relieves the burden from internal enterprise security teams,” he said.
He added that Apax would be investing in “continued product innovation and growth acceleration while maintaining the company’s number one priority – its customer centricity”.