US tech specialist invests £32m in Avecto

FAST-growing security software firm Avecto has struck a £32m investment deal with a US private equity firm.

JMI Equity based in San Diego, is a specialist technology investor. It has invested $49m for an undisclosed stake in the Cheadle-based company, which in July posted reported operating profit of £3.745m on revenues of £14.675m.

Avecto is a market leader in the large and fast-growing $3bn “endpoint security sector”.  As well as its North West base it has offices in Boston, Melbourne, and Frankfurt.

Avecto was founded by entrepreneurs Mark Austin and Paul Kenyon in 2008 and has grown quickly and profitably every year since formation.

The deal will help the company unlock further growth via new customers and products in a vibrant market place. As part of the deal, Jit Sinha, general partner, and Suken Vakil, principal, at JMI Equity will join Avecto’s board.

Paul Kenyon, co-CEO at Avecto said: “To this point we have created a unique endpoint suite of security products and built an enviable business all without any external funding.

“Our integrated product suite provides three levels of protection delivered through a single, lightweight software agent – the leading and most effective offering in a sector that is growing in importance with the continued expansion of mobile workforces operating in multiple locations at the endpoints of their corporate networks.

“The investment from JMI will enable us to significantly boost our capabilities as we add even more talent to all areas of the business in order to continue to deliver high value solutions to our expanding customer base. JMI has significant experience in growing enterprise software companies which will be invaluable as we enter this new exciting chapter.”
 
Mark Austin, co-CEO at Avecto added: “JMI’s involvement will help us to take our innovative software to more organisations across the globe as we focus on building awareness and spreading the message that prevention is possible on the endpoint. The investment will also help to expedite our ambitious R&D plans, bringing our product roadmap to life.”

Suken Vakil of JMI said: “As a market leader in this space, Avecto has seen significant success with its product platform, which has increasing global customer demand and huge potential for future growth. We look forward to working with the Avecto team to build on its reputation for innovation and quality.s”

Results International acted as exclusive financial adviser to Avecto and its shareholders on this transaction.