The owners of eSentire, a leading cybersecurity firm backed by Warburg Pincus, are exploring a potential sale that could value the company at approximately $1 billion, including debt. This move comes amid a surge in demand for AI-based security solutions across various industries.
Key Takeaways
Potential Valuation: eSentire could be valued at around $1 billion, including debt.
Ownership: The company is owned by Warburg Pincus, CDPQ, and Georgian.
Revenue: eSentire has an annual recurring revenue of about $150 million.
Customer Base: The firm serves over 2,000 organizations in more than 80 countries.
Advisors: Investment bank Evercore is advising on the sale process.
Background
Founded in 2001, eSentire specializes in artificial intelligence-powered cybersecurity tools designed to help companies detect and mitigate security threats before they can disrupt operations. The company has grown to serve over 2,000 organizations across more than 80 countries, spanning multiple industries.
Warburg Pincus first invested in eSentire in 2017. In 2022, Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) and Canadian venture capital firm Georgian acquired significant stakes in the company from Warburg Pincus.
The Sale Process
The owners of eSentire are working with investment bank Evercore to explore various options, including a potential sale. The company aims to attract interest from other private equity firms. The valuation target is more than seven times eSentire's annual recurring revenue of approximately $150 million. However, sources caution that a deal is not guaranteed.
Industry Context
The cybersecurity industry has seen robust dealmaking activity, driven by increased spending on AI-based security software by large corporations. Earlier in August, Japanese cybersecurity firm Trend Micro was reported to be exploring a sale after attracting takeover interest. In July, Google parent Alphabet attempted to acquire cybersecurity startup Wiz for $23 billion, but the talks eventually fell through.
As eSentire explores its strategic options, the potential sale could significantly impact the cybersecurity landscape. With a strong customer base and advanced AI-driven solutions, the company is well-positioned to attract substantial interest from private equity firms and other investors.
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Sources
Warburg Pincus-backed cybersecurity firm eSentire explores sale, sources say | Reuters, Reuters.
Warburg Pincus-backed cybersecurity firm eSentire explores sale, sources say, Yahoo Finance.
Warburg Pincus-backed cybersecurity firm eSentire explores sale, sources say, XM.
Warburg Pincus-backed cybersecurity firm eSentire explores sale, sources say - MarketScreener, marketscreener.com.