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Thoma Bravo to buy Broadcom’s Veracode
Posted on Tuesday, 06 November 2018 14:59
Private equity firm Thoma Bravo has agreed to pick up next-generation application security testing provider Veracode for USD 950.00 million.

Broadcom became the owner of the target after completing its USD 18.40 billion acquisition of CA yesterday.

Veracode is expected to receive additional support from Thoma Bravo for future operational and product development plans, including for its software-as-a-service platform, which helps security teams to find and fix related defects.

The company serves more than 2,000 customers across a wide range of industries, including nearly one-third of the Fortune 100 and more than 20 of Forbes’ top 100 most valuable brands.

Veracode’s software offers a scalable way to manage security risk across an entire application portfolio, with broad language, framework and testing technology coverage.

It uses a range of threat mitigation techniques, combined with its in-house programming to allow companies to keep software secure.

Veracode was purchased by CA for USD 614.00 million in April 2017 and is part of Thoma Bravo’s plans of expanding its investments in technology firms, including its USD 2.10 billion agreement to pick up Imperva last month.

The deal is subject to the usual regulatory approvals and is slated to complete in the fourth quarter of 2018.

Veracode’s general manager, Sam King, noted: “Software security is one of the most consequential issues facing companies as they look to compete in the digital economy.

“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.”

The software publishing industry has been targeted in 3,437 deals announced worldwide since the start of the year, according to Zephyr, the M&A database published by Bureau van Dijk.

International Business Machines (IBM) agreed to acquire Red Hat for USD 34.00 billion in the largest of these, by far.

DST Systems, Xiaoju Kuaizhi, Beijing Mobike Technology and VeriFone Systems, among others, were also targeted.

© Zephus Ltd