Thoma Bravo takes Broadcom’s Veracode business in $950m carveout

App security testing business Veracode has been carved out of industry giant Broadcom in a $950m buyout by software and tech-focused US private equity house Thoma Bravo.

Veracode’s SaaS platform and integrated solutions look to help security teams and software developers find and fix security-related defects at all points in the software development lifecycle.

The company currently serves more than 2,000 customers, including nearly one-third of the Fortune 100 and more than 20 of Forbes’ 100 most valuable brands.

Thoma Bravo partner Chip Virnig said, “In today’s digital economy practically every company is turning into a software company through their own digital transformation.

“As these companies continue to build complex applications, many of which contain sensitive data, the applications themselves increasingly become the target of more sophisticated and omnipresent cyber-attacks.

“As such, applications need to be built with security in mind day one, and we see a significant, growing market opportunity for Veracode’s product offerings.”

Thoma Bravo’s previous cybersecurity investments have included SailPoint, which is now listed on the NASDAQ exchange, Barracuda Networks, LogRhythm, Bomgar, BlueCoat Systems, SonicWall and Entrust.

The firm also has years of experience effectively executing software carveouts and driving growth and productivity in newly created platform companies, including Digital Insight, McAfee, Kofax and Dynatrace.

Thoma Bravo managing partner Seth Boro added, “As long-term investors in cybersecurity software, we are impressed with the speed and quality of innovation at Veracode.

“Sam King and her team are seasoned, proven operators addressing a critical security problem in application development and delivering best in class products to a rapidly growing customer base for over 10 years.”

The deal is expected to close before the end of the year.

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