Thoma Bravo, an American private equity firm, announced on Monday that it is purchasing application security testing company Veracode from Broadcom for $950 million in cash.
Based in Burlington, Massachusetts, Veracode is a software-as-a-service (SaaS) company that helps software developers detect security issues in their applications at various points in the software development cycle. Thoma Bravo and Veracode said in a press release that the acquisition is meant to further Vercaode’s “future operational and product development plans.”
“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,” said Sam King, currently Veracode’s senior vice president and product manager, and CEO-to-be when the deal is done.
Veracode hasn’t been owned by Broadcom for very long. Broadcom purchased Veracode’s previous owner, CA Technologies, in July. CA Technologies had purchased Veracode in March 2017 for $614 million. Two years prior, Veracode was valued at about $450 million and had been eyeing an initial public offering, according to Fortune.
“As long-term investors in cybersecurity software, we are impressed with the speed and quality of innovation at Veracode,” said Seth Boro, a managing partner at Thoma Bravo, in a press release. “Sam King and her team are seasoned, proven operators addressing a critical security problem in application development and delivering best in class products to a rapidly growing customer base for over 10 years.”
The companies boast that Veracode has more than 2,000 customers and serves “nearly one-third of the Fortune 100, and more than 20 of Forbes’ 100 Most Valuable Brands.”
Thoma Bravo is a software-focused private equity firm that says it has closed more than 50 software and technology acquisitions. The deal is expected to close in the fourth quarter of 2018.