ExtraHop Acquired: Executive Leadership Remains In Place
ExtraHop CEO Arif Kareem and co-founders Jesse Rothstein, Chief Technology Officer, and Raja Mukerji, Chief Customer Officer, will continue in their respective roles. Rothstein and Mukerji will also remain significant investors in the Company.ExtraHop is the first dedicated investment made from Bain Capital Fund XIII, the firm's latest flagship $11.8 billion private equity fund. ExtraHop also is among the first investments in Crosspoint Capital Fund I, a $1.3 billion private equity fund focused on the cybersecurity, privacy, and infrastructure software sectors.The deal is expected to close in the summer of 2021.ExtaHop Acquired: Executive Perspectives on Cybersecurity Market Opportunity
In a prepared statement about the deal, Kareem said:"Organizations today face an array of incredibly sophisticated cyber attacks with diverse motivations that run the gamut from theft of sensitive personal and business data to illicit profit. Attackers have long had the advantage, and we're on a mission to change that. By combining our exceptional team, market need, and technology with the deep domain expertise and resources of Bain Capital and Crosspoint Capital, ExtraHop has the opportunity to grow faster and accelerate our innovation to help our customers defend their operations from even the most advanced threats."
"As the events of the last few weeks make crystal clear, cybersecurity is now a mission-critical requirement in the strategy and operations of every organization on the planet, with enormous implications for financial and reputational well-being. We believe that network detection and response is the next major cybersecurity segment and that ExtraHop has the best enterprise technology in the space."
"The Company's approach is uniquely positioned to help enterprises defend against the most advanced cyber threats and address the security challenges of multi-cloud environments, enterprise IoT, and hybrid workforces. We are thrilled to join the talented team at ExtraHop, in partnership with Crosspoint Capital, to help accelerate the growth of the business and continue advancements in the art of cyber defense.
"After many years of building and delivering network visibility into the cyber industry, I was very impressed with the capabilities of ExtraHop in their ability to protect the evolving network as workloads shift to the cloud and networks expand beyond what corporations control. When you're under attack, deep visibility into east-west traffic is vital for modern defense and ExtraHop has set itself apart in this emerging category with powerful AI and behavior-based analytics."
"ExtraHop brings a unique level of visibility into networks and delivers sophisticated real-time detection, investigation, and response capabilities to organizations around the world. We are excited to partner with the ExtraHop team and Bain Capital to support the Company in the next chapter of its growth."
ExtraHop Buyout: Deal Advisors
Multiple third parties advised on the deal. Examples include:- Qatalyst Partners is serving as the exclusive financial advisor to ExtraHop, and Wilson Sonsini is serving as legal counsel.
- Morgan Stanley & CO. LLC is serving as the financial advisor to Bain Capital and Crosspoint Capital, and Ropes & Gray LLP is serving as legal counsel.
- PwC is serving as the accounting advisor to Bain Capital.
