TA Associates, a global growth private equity firm, has made a significant growth investment in Veracode, a global provider of application security services. The investment values Veracode at $2.5 billion with the firm’s current majority investor, Thoma Bravo, retaining a minority position with the firm.
Veracode delivers a comprehensive software security platform that helps organizations provide secure software at scale. The firm’s platform streamlines workflows to help its customers make sure its software is secure without compromising speed. Additionally, the firm is an eight-time leader in the Gartner Magic Quadrant for application security testing.
“TA recognizes the strong market opportunity for Veracode, driven by the need to secure software and educate developers,” said Jason Werlin, a managing director at TA. “We believe Veracode’s heritage and sustained leadership position, along with the breadth and depth of its portfolio, uniquely positions the company to drive the next wave of growth in the application security market. TA is excited to partner with the Veracode management team and Thoma Bravo on the next phase of the company’s journey.”
Deutsche Bank Securities Inc. is serving as exclusive financial advisor to Veracode and Thoma Bravo, and leading and providing committed debt financing to TA for the transaction. Barclays is serving as financial advisor to TA. Kirkland & Ellis is acting as legal counsel to Thoma Bravo and Goodwin Procter is serving as legal counsel to TA.