Thoma Bravo to buy software security firm Veracode for $950 million

Industry:    2018-11-06

Thoma Bravo said on Monday it would buy software security firm Veracode for $950 million, the latest addition to the technology-focused buyout group’s cybersecurity portfolio.

Veracode is currently owned by chipmaker Broadcom (AVGO.O), which acquired the business as part of its purchase of software company CA Inc. CA bought Veracode in April last year for about $614 million.

Thoma Bravo has been increasing its investments in technology firms. Last month it announced a deal to buy Imperva Inc (IMPV.O) for $2.1 billion, while in July it acquired a majority stake in Centrify Corp, according to sources.

Other cybersecurity companies owned by Thoma Bravo include DigiCert Inc, Bomgar Corp and LogRhythm Inc.

Sales of cybersecurity products are growing faster than the overall tech industry as businesses seek to defend themselves against financial crimes and disruption of their operations caused by hackers.

Veracode’s acquisition is expected to close in the fourth quarter of 2018.

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