Clearlake Capital Group LP has made a new equity investment in RSA Security LLC, a global provider of mission critical cybersecurity software and governance risk and compliance management software solutions to enterprises. With this investment, Clearlake will become an equal partner with Symphony Technology Group, which initially acquired the business in 2020 alongside Ontario Teachers’ Pension Plan Board from Dell Technologies. Ontario Teachers’ will remain a significant minority shareholder.
“It [RSA] is poised to benefit from several near-term market growth drivers, including the increased and urgent demand for enterprises to use technology to address challenges in security, risk management and fraud prevention,” said Behdad Eghbali, co-founder and managing partner, and Prashant Mehrotra, partner, of Clearlake, said. “RSA participates in the high growth cybersecurity and GRC markets, both of which have been critical and targeted investment themes representing significant market opportunities for Clearlake’s technology and software sector investing activity. We look forward to leveraging our proprietary O.P.S framework to support the management team and its many talented and dedicated employees to accelerate the growth of the company.”
“We are thrilled to partner with Clearlake as RSA continues to focus on providing best-in-class cybersecurity and risk management solutions to enterprises across the world,” said Rohit Ghai, CEO of RSA. “Clearlake has a proven track record of enhancing value at software companies, especially in cybersecurity and risk management. We believe that their investment is a validation of our business momentum and will further strengthen our ability to grow organically as well as execute upon a compelling M&A strategy.”
Goldman Sachs & Co. LLC served as lead financial advisor and Morgan Stanley & Co. LLC served as financial advisor to RSA. JPMorgan Chase Bank N.A., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co. LLC, UBS Investment Bank, Bank of America, Barclays, and Jefferies are arranging the debt financing for the transaction. UBS Investment Bank, JP Morgan Securities LLC, BofA Securities, Barclays, and Jefferies served as buyside advisors in the transaction. Sidley Austin LLP served as legal counsel to Clearlake with Davis Polk & Wardwell LLP representing STG and RSA.