Hornetsecurity Boosts Private Equity Funding; Seeks More Cybersecurity Acquisitions
Hornetsecurity, backed by an expanded roster of private equity investors, is seeking to make more cybersecurity acquisitions. It’s a safe bet that the potential M&A deals will have implications for Hornetsecurity’s growing roster of MSSP and MSP partners.
The background: TA Associates is making a strategic growth investment in Hornetsecurity. Financial terms of the deal, expected to close in Q4 of 2022, were not disclosed. The new round of investment “aims to further support Hornetsecurity’s product build-out and international expansion strategy through continued organic growth acceleration and M&A,” the security company said
Cybersecurity Business Leverages MSP, MSSP Partnerships
Hornetsecurity, based in Hannover, Lower Saxony, Germany, was founded in 2007. The company has more than 400 employees. The Hornetsecurity product portfolio includes email security, backup solutions, and archiving and continuity services, as well as security awareness training. Many of those solutions specifically safeguard Microsoft Office 365 customers.
Hornetsecurity’s partner ecosystem spans 8,000 value-added resellers (VARs), managed service providers (MSPs) and managed security service providers (MSSPs), the company indicated.
TA Associates, meanwhile, has considerable experience in the cybersecurity and IT management software markets. Example investments and/or acquisitions include cybersecurity firm Netwrix and IT management firm Ivanti.
Previous Security Acquisitions: Hornetsecurity has M&A experience. Example acquisitions include:
- May 2022: IT-Seal for security awareness training.
- March 2021: Canadian cloud email protection company Zerospam
- January 2022: Altaro backup solutions for Microsoft Hyper-V, VMware, physical servers, network endpoints and Microsoft Office 365.
New Cybersecurity Funding: Executive Perspectives
In a prepared statement about funding from TA, Hornetsecurity CEO Daniel Hofmann said:
“Over the last two years, our partnership with PSG and Verdane has enabled us to execute on our strategic goal of providing all organizations with comprehensive cloud security and compliance solutions. We are excited to welcome TA as a new investor, and to continue our partnership with PSG and Verdane, as we invest further in our growth and product innovation. Together, we will work to deliver even greater value to our customers, partners, employees and the communities in which we do business.”
Added Morgan Seigler, managing director, and Stefan Dandl, Principal, at TA:
”Hornetsecurity has continually demonstrated its ability to innovate and identify solutions that meet the evolving cyber security and compliance needs of its customers. Looking ahead, we believe there is ample opportunity for the Company to further strengthen its product portfolio and grow its footprint, both organically and through strategic acquisitions. We look forward to partnering with Hornetsecurity’s proven management team, led by Daniel Hofmann, PSG and Verdane in support of the Company’s growth journey.”
Noted Dany Rammal, managing director and head of PSG in Europe, and Christian Stein, managing director:
“The Hornetsecurity management team has done an incredible job scaling the Company’s solution suite into a comprehensive cloud security and compliance offering. We warmly welcome TA into our existing partnership with Verdane and are excited to jointly back Daniel Hofmann, Daniel Blank (COO) and the entire Hornetsecurity team in their pursuit of the Company’s next phase of growth to create a leading international cloud security and compliance software champion.”
Concluded Emanuel Johnsson, partner, and Hendrik Wildhagen, director at Verdane:
“We are excited to welcome TA as an equal partner on our journey to support the Hornetsecurity team in building the world’s leading cloud security and compliance SaaS provider. Since our investment in 2016, Daniel Hofmann and the entire Hornetsecurity team have built a cyber security powerhouse that continues to set new standards for cloud security. We look forward to continuing on that journey in close collaboration with TA, our existing partner PSG and the entire Hornetsecurity team.”
Hornetsecurity’s overall business valuation was not disclosed.