Thoma Bravo’s Acquisition of a Majority Interest In Centrify

Kirkland & Ellis is serving as Thoma Bravo’s legal advisor, and Golub Capital is providing financing for the transaction. Sidley Austin is Centrify’s legal advisor, and Barclays is serving as its financial advisor.

Thoma Bravo, a leading private equity investment firm, will acquire a majority interest in Centrify, the market-leading next-generation Identity & Access Management platform, from its venture capital investors, led by Mayfield, Accel Partners, Jackson Square Ventures and Index Ventures. The transaction is expected to close in the third quarter of this year, subject to usual and customary closing conditions and regulatory approvals. Financial details of the transaction were not disclosed.

According to the 2018 Verizon Data Breach Investigations Report, compromised user identities is the top cybersecurity attack vector, and with the shift to cloud computing by enterprises, cloud security risks such as password sprawl and privileged access management are expected to accelerate. Centrify meets these challenges as the only “Leader” in both The Forrester Wave™ Privileged Identity Management (PIM) and Identity-As-A-Service (IDaaS) reports. By converging these solutions into a unified Next-Gen Access platform for Zero Trust Security, Centrify is well-positioned as an early entrant and cybersecurity innovator of next generation technology that protects its customers’ assets and access to information from external and internal cyber threats.

Founded in 2004 and headquartered in Santa Clara, California, Centrify serves over five thousand customers spanning the public and private sectors, including blue-chip Global 2000s, across diverse industries including defense, banking, energy, retail, manufacturing and health care.

Thoma Bravo, an established investor in enterprise security software, has successfully partnered with other innovators in the growing identity space, including Bomgar and SailPoint. The firm’s longtime experience investing in the sector and ability to build a productive partnership with a company’s existing management differentiates them within the private equity community.

The Sidley team was led by partner Martin Wellington (Picture) and he was supported by associates, Sara Carian (Palo Alto), Anna Maria Galinska (Palo Alto), Nick DeAngelis (Palo Alto) and Amanda C. McFarlane (Palo Alto). Partner Glenn G. Nash (Palo Alto) advised on the intellectual property issues with support from associates Rachelle Soderstrom (San Francisco), Nathan B. Wenk (Boston) and Monica S. Kim (Palo Alto). Partner Edwin L. Norris (Los Angeles) advised on the tax issues with support from associate Matthew S. Schonholz (Los Angeles). Partner Matthew E. Johnson (Chicago) advised on the employee benefit issues with support from associate Alexandra M. Peterson (Chicago). Senior Counsel Marc E. Raven (Chicago) is advising on the antitrust aspects of the transaction with support from associate Amanda Norton (Washington, D.C.).

Involved fees earner: Martin Wellington – Sidley Austin LLP; Sara Carian – Sidley Austin LLP; Anna Maria Galinska – Sidley Austin LLP; Nick DeAngelis – Sidley Austin LLP; Amanda McFarlane – Sidley Austin LLP; Glenn Nash – Sidley Austin LLP; Rachelle Soderstrom – Sidley Austin LLP; Nathan Wenk – Sidley Austin LLP; Monica Kim – Sidley Austin LLP; Edwin Norris – Sidley Austin LLP; Matthew Schonholz – Sidley Austin LLP; Matthew Johnson – Sidley Austin LLP; Alexandra Peterson – Sidley Austin LLP; Marc Raven – Sidley Austin LLP; Amanda Norton – Sidley Austin LLP;

Law Firms: Sidley Austin LLP;

Clients: Centrify Corporation;

Author: Ambrogio Visconti