The Carlyle Group LP (Nasdaq: CG) has agreed to buy cybersecurity data firm Novetta from Arlington Capital Partners.
Arlington formed Novetta in 2012 when it merged portfolio companies White Oak Technologies and FGM Inc. Novetta provides cybersecurity data analytics for government agencies include the Department of Defense and the Department of Homeland Security.
Novetta CEO Peter LaMontagne says the deal with Carlyle, which has undisclosed terms, was the result of a strategic review process. “After careful consideration of strategic alternatives, our board unanimously concluded that a Novetta partnership with Carlyle is the best next step in achieving our vision to be the world’s premier advanced analytics company,” says LaMontagne. Under Arlington’s ownership, Novetta has made seven add-on acquisitions including data analytics providers International Biometric Group LLC and White Cliffs Consulting LLC, both completed in 2012.
Morgan Stanley & Co. LLC (NYSE: MS), Houlihan Lokey Inc. (NYSE: HLI) and Sheppard, Mullin, Richter and Hampton are advising Novetta and Arlington. Jefferies and Latham & Watkins are Carlyle’s advisers. Carlyle is receiving financing from Jefferies and Societe Generale.
Carlyle is making the investment out of the firm’s $13 billion Carlyle Partners VI fund. The firm made another software deal earlier this year when it announced plans to buy Symantec Corp.’s Veritas data storage business for $8 billion.
Other cybsecurity software deals in 2015 include Elbit Systems Ltd’s $158 million purchase of Nice Systems Ltd.’s intel and cyber business and Q2 Holdings Inc. (NYSE: QTWO) buying financial services security provider Centrix Solutions Inc. in a $29 million cash deal.