Private #Equity Giants Buy #Cybersecurity #Firm for $400 #Million

Source: National Cyber Security News

The trend of private equity firms snapping up cybersecurity businesses continues.

BlackRock and Pamplona Capital Management have jointly acquired PhishMe, a cybersecurity company based in Leesburg, Va., in a deal that valued the firm at $400 million.

Pamplona has purchased a two-thirds stake in the business, while BlackRock has bought the remainder, a person familiar with the terms of the deal told Fortune.

In addition to the change in ownership, PhishMe on Monday rebranded itself as “Cofense.” The new name derives from a combination of “collaborative” (or “collective”) and “defense.”

Rohyt Belani, CEO and cofounder of the company now called Cofense, said the executive team decided to sell the business to allow “early investors to cash out, and for employees and common stock holders to partake in the spoils.” The company was last privately valued at roughly $200 million after its most recent fundraising round in July 2016, according to Pitchbook, a database that tracks venture capital deals.

The cybersecurity industry benefited from a flurry of VC activity as big data breaches made headlines over the past few years. A recent pullback in funding, however, has left a glut of companies struggling to find new means of financing.

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