Optiv decided against an IPO and the deal will conclude in early 2017
Kohlberg Kravis Roberts’s (KKR) acquisition of Optiv Security, valued at $1.8 billion, has put the kibosh on the latter’s planned IPO, while continuing KKR’s breakneck pace of buying up other assets this year to expand its presence across a wide range of services, from IT security to customer service.
Optiv CEO Dan Burns told the press in his statement that, “This new investment from KKR will enable our company to better help global clients address their full range of cyber risk and security needs in a customized and integrated fashion.”
Another Optiv investor, Blackstone, will retain a minority interest in the company, which helped provide it with capital for the first year and a half of its existence.
International development is central to KKR’s plans for its technology holdings, with the private equity firm looking to help its new properties manage and finance their own mergers and acquisitions outside of the US.
Other recent KKR acquisitions include Epicor’s enterprise resource planning suites ($3.3 billion) and Calabrio’s call center analytics business ($200 million). Though, not all such deals have proven successful. Taking a risk with Aceco TI, reports Bloomberg, KKR may, depending how arbitration turns out, write-off the deal ($700 million) entirely due to allegations of corruption at the Brazilian data enterprise.
Optiv Security has much healthier profile and future than that. Founded in 2015 with a merger of 2 other companies, it has acquired a large number of customers as more and more companies look to help better secure their systems. Just ahead of the deal, Optiv entered into the Shared Assessments Program, with the aim of advancing its cloud-based “Evantix” security platform.
Optiv’s planned IPO would have had an initial target of $100 million, according to filings with the US government. Instead, it’s taken the form of a “rollup,” according to The Wall Street Journal, where a company passes from one private equity firm to another for more immediate returns.