MSSP Herjavec Group Acquired By Private Equity Firm Apax Partners
Private equity firm Apax Partners is acquiring Herjavec Group, the Top 250 MSSP founded and led by Shark Tank angel investor Robert Herjavec. Under terms of the deal, Herjavec remains a “significant stakeholder” and CEO of the MSSP. Financial terms of the deal were not disclosed.
This is M&A deal number 106 that MSSP Alert and sister site ChannelE2E have covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Also of note: M&A activity in the MSSP sector has been strong — according to this expansive list of MSSP mergers and acquisitions.
Apax Partners Acquires Herjavec Group: MSSP Strategy Explained
Herjavec Group, founded in 2003, offers Cybersecurity Advisory Services, Architecture & Implementation of best of breed technologies, Identity & Access Management, 24/7 Managed Security Services, Threat Management and Incident Response. Herjavec Group’s expansion has included organic growth as well as tuck-in acquisitions — such as Securience, an IT security consulting firm with identity and access management (IAM) expertise.
Meanwhile, Apax has experience in the cybersecurity market. Previous investments include Coalfire in 2020 and Sophos in 2010. (Private equity firm Thoma Bravo now owns Sophos.) And in the IT services market, Apax acquired ThoughtWorks in 2017. Apax typically invests in companies across four sectors: Tech & Telco, Services, Healthcare and Consumer.
Among the key focus areas for Apax and Herjavec Group going forward, the two firms point to:
- Accelerating HG’s international expansion efforts;
- augmenting HG’s team with additional threat and identity resources; and
- further advancing the HG Identity and HG SOAR proprietary platforms.
Apax Partners Acquires Herjavec Group: Executive Perspectives
In a prepared statement about the deal, Robert Herjavec, founder & CEO of Herjavec Group, said:
“I couldn’t be more thrilled to welcome the Apax Partners team to Herjavec Group. Over the past seventeen years, HG has remained steadfast in our mission to make enterprises around the world more secure. We have succeeded in that effort by developing an industry-leading 24/7 Managed Security Services practice, by advancing our proprietary IP, by diversifying our offerings to include Advisory, Managed Detection & Response, Identity and Incident Response services, and by hiring what I fundamentally believe is the very best team in the world. This acquisition and the growth funding that results is a testament to our entire team, and to our loyal customer base who has entrusted us with their mission critical assets. I am excited for this next phase in our growth trajectory as we continue to earn their trust by expanding our localized support models, deepening our Managed Security Services offerings and furthering our platform development to drive incremental automation, efficiency and security ROI.”
Added Rohan Haldea, a partner at Apax Partners:
“Under Robert’s leadership, HG has grown into an impressive business, providing critical cybersecurity solutions with a special focus on customer service. In an increasingly complex cybersecurity and IT market, where we are seeing ever more sophisticated cyber- crime, HG is a trusted partner that relieves the burden from internal enterprise security teams. We are excited to partner with Robert and team as we look to drive the business forward, investing in continued product innovation and growth acceleration while maintaining the company’s number one priority: its customer centricity.”
MSSP M&A: Legal and Financial Advisors
Multiple organizations offered business, financial and legal guidance on the deal. Key advisors included: