Alert Logic, a Houston, Texas-based provider of Security-as-a-Service solutions for cloud environments, announced on Tuesday that it has agreed to be acquired by private equity firm Welsh, Carson, Anderson & Stowe. The transaction will put a majority of company shares in the hands of the private equity investors and Alert Logic’s executive management.
Alert Logic offers Security-as-a-Service solutions for customers of hosting and cloud service providers, and says more than half of the largest managed hosting and cloud service providers use its technology to secure their customer environments. Overall, the company counts more than 2,200 customers that use its products.
Alert Logic recently announced that it had $10.1 million in revenue for the fiscal quarter ending June 30, 2013, and that the company is currently operating at an annual revenue run-rate of more than $43 million.
The company has received several rounds of venture capital funding over the years, including a Series E investment of $12.6 million in April 2011, and a $12.2 million round in June 2012.
Alert Logic’s existing management team will continue to operate the business which will receive additional growth capital from Welsh Carson in connection with the transaction.
The terms of the transaction were not disclosed, and the transaction is expected to close by the end of August. Shareholders cashing out on the acquisition include Updata Partners, Covera Ventures, Mercury Fund, OCA Ventures, Access Venture Partners, and Industry Ventures.