LLR Acquires Cybersecurity Developer BluVector from Northrop Grumman
LLR Partners has bought cybersecurity company BluVector from Northrop Grumman Corp. (NYSE: NOC) for an undisclosed amount. LLR has committed $50 million, the combined total of the acquisition price and a growth capital investment, to BluVector.
BluVector develops machine-learning software that detects and hunts cyber-threats, all while reducing response times. The target’s technology enables security operations center analysts and incident response teams to gather insight on threats in real time. BluVector, based in McLean, Virginia, is designed to operate within an organization’s security team. As part of the deal, the target will now operate as a standalone business led by CEO Kris Lovejoy.
"BluVector's technology is highly scalable and easy to integrate with disparate security solutions, giving enterprises a holistic way to help defend against all forms of malware, both known and unknown," states LLR Partners vice president Brian Radic.
LLR is a Philadelphia, Pennsylvania-based middle-market private equity firm that primarily focuses on software and technology-enabled services, in addition to sections such as: business services, consumer goods, education, financial services, and health care services. In 2016, the firm made an investment in remote video monitoring service provider Eyewitness Surveillance. Before that, the firm has invested in: disaster recovery business Agility Recovery; payment service and data management company Phreesia Payment Services; and technology-services company Aasonn LLC.
Growing cybersecurity threats have boosted interest in M&A for companies that provide protection through software and monitoring, especially as hackers have continued to invade government agencies, presidential campaigns and large corporations. Recent deals include: Coalfire’s acquisition of Veris Group to create one of the largest providers of cybersecurity services on the market; TPG’s agreement to add Intel Corp.’s computer security unit for $4.2 billion; Accenture’s (NYSE:CAN) purchase of Redcore; Thoma Bravo’s deal for Bomgar; and Vista Equity Partners’ acquisition of Regulatory DataCorp Inc.