Private equity investment firm Thoma Bravo on Monday announced that it has entered an agreement to acquire application security testing company Veracode from Broadcom.
Thoma Bravo is prepared to pay $950 million in cash, with the transaction expected to close in the fourth quarter of 2018.
The investment firm says it will support Veracode’s operational and product development plans. Sam King, current senior vice president and general manager of Veracode, will become the CEO of Veracode once the acquisition is completed.
Veracode offers an application security testing platform that helps developers and security teams find and fix vulnerabilities in the software they use, including their own and third-party applications. The company claims to have over 2,000 customers, including nearly one-third of Fortune 100 firms and more than 20 of the Forbes 100 Most Valuable Brands.
“Partnering with Thoma Bravo, a proven security software investor, is expected to extend our market reach and further fuel our innovation so that we can offer the broadest software security platform and empower us to accelerate growth — all to allow us to transform the way companies achieve their software security goals,” King said.
Broadcom sold Veracode just as it completed the acquisition of CA Technologies, for which it paid nearly $19 billion. CA Technologies bought Veracode for $614 million in cash in 2017.
Now that the acquisition has been completed, CA will operate as a wholly owned subsidiary of Broadcom and its common stock will no longer be traded on NASDAQ.
Thoma Bravo has acquired more than 30 enterprise security companies over the past years, including SailPoint, Barracuda Networks, Imperva, Crossbeam Systems, Centrify, LogRhythm, and Imprivata.
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