Summit Partners Pumps Cash into NetWitness
Another private equity play around the Beltway will lead to further consolidation among government services businesses--as one is set to expand its competencies.
January 13, 2010
Summit Partners, the Boston-based private equity firm, invested an unspecified sum into NetWitness Corp., a DC-area security networks operator.
Expanding its core competencies from just government services, NetWitness’ ability to engage corporate and financial services clients that need similar security helped boost its 2009 revenue to 220% of what they were the prior year, the company said in a separate statement.
Much of the company’s development has been organic, but with its new PE partners, this is set to change.
Harrison Miller, a managing director with Summit Partners, told the M&A Journal the cash injection allows NetWitness to make “acquisitions of technologies that will broaden the NetWitness platform.”
NetWitness has been awarded contracts with two of the top 10 US financial services institutions as those firms looked to tighten security. The company would not specify which firms it has serviced.
Increasingly, private equity has made a push to enter the government contracting sector at a time when revenues are projected to fall corresponding to government cutbacks and valuations are coming down with them.
GTCR’s government services platform Six3 bought Harding Security Associates last year and CI Capital Partners, Providence Equity Partners and Veritas Capital have either already led deals or have been combing through targets. Additionally, PE firm Riordan, Lewis & Haden Equity Partners has worked to build out its portfolio company Security Mission Solutions. Its most recent deal was this year’s buy of Sim-G Technologies.
Other cybersecurity and defense sector plays include GE Security’s sale of its security unit to United Technologies for $1.82 billion and Kratos Defense & Security Solutions’ putting its Southeast Public Safety and Security Segment on the block last year.
Find out more information about people mentioned in this article from our People Database:
For more information on related topics, visit the following:
