Barracuda Networks acquired by PE firm Thoma Bravo for $1.6 bn

Barracuda Networks managementBarracuda Networks, a provider of security and data protection solutions, will be acquired by private equity investment firm Thoma Bravo in an all-cash transaction valued at $1.6 billion.

Barracuda will operate as a privately-held company with a focus on email security and management, network and application security, and data protection solutions that can be deployed in cloud and hybrid environments.

BJ Jenkins, chief executive officer of Barracuda, said: “Thoma Bravo has an excellent history of investing in growing security businesses, and this transaction speaks to the value and strength of Barracuda’s security platform, which helps customers protect and manage their networks, applications, and data.”

Earlier this month, Barracuda Networks has acquired privately held Sonian, a provider of public cloud archiving and business insights.

The next-generation firewall (NGFW) market size is estimated to grow from $2.39 billion in 2017 to $4.27 billion by 2022. Web application firewall market will reach $5.48 billion by 2022.

Barracuda Networks posted revenue of $94.3 million (+7 percent) and net income of $1.6 million in the second quarter fiscal 2018.

Subscription revenue of Barracuda Networks increased 14 percent to $76 million, representing 81 percent of total revenue, and appliance revenue was $18.3 million, compared with $21.0 million in the second quarter of fiscal 2017.

Barracuda Networks said its gross billings were $108.5 million. Billings for core products increased 22 percent to $70.9 million from $58.1 million in the second quarter of fiscal 2017. The number of active subscribers of Barracuda Networks grew 17 percent to over 348,000.