Investment firm Bain Capital acquires Blue Coat for £1.6 billion

News by Doug Drinkwater

Private investment firm Bain Capital has confirmed that it is to acquire enterprise security technology vendor Blue Coat from fellow private equity firm Thoma Bravo LLC in an all-cash deal valued at around £1.6 billion (US$ 2.4 billion).

In a statement issued yesterday, the two companies revealed that they had entered into a “definitive agreement” for Blue Coat to be acquired from Thoma Bravo LLC. The transaction is subject to customary closing conditions, including requisite regulatory approvals, and is expected to close in the first half of this year.

Goldman, Sachs & Co is serving as financial advisor to Blue Coat. Wilson Sonsini Goodrich & Rosati is acting as legal adviser to Blue Coat. Jefferies Finance LLC is providing the financing commitments, and Jefferies LLC is acting as sole financial advisor to Bain Capital. Ropes & Gray LLP is acting as legal counsel, and PwC is serving as accounting adviser to Bain Capital.

“Blue Coat has differentiated products for protecting enterprises from even the most sophisticated threats, and we are proud to be a foundational part of the security architecture for the world's largest enterprises. The world's most trusted brands use Blue Coat, and the acquisition by Bain Capital sets us on the trajectory to further grow our portfolio, better serve our customers and help us prepare to return to the public markets,” said Gregory S Clark, chief executive officer, Blue Coat Systems. “Bain Capital has a long history of accelerating growth, and I look forward to partnering with them in our journey to be one of the top performing security companies in the world.”

“We are excited by the opportunity to work with Blue Coat's world-class management team to grow the business organically and through acquisitions, and to ultimately return the company to the public markets,” said David Humphrey, a managing director at Bain Capital. “We are very impressed with the profitable growth the company has demonstrated and believe strongly in the future growth of the cyber-security market and Blue Coat's position in this important sector.”

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