Endpoint security software firm, Avecto, has received a $49 million (£32 million) minority investment from JMI Equity, a growth equity firm focused on investing in leading software and services companies. As part of the transaction, Jit Sinha, General Partner, and Suken Vakil, Principal, at JMI Equity will join the Board of Directors.
Avecto is a market leader in the large and fast-growing $3 billion endpoint security sector. Headquartered in Manchester, UK, with offices in Boston, USA, Melbourne, Australia and Frankfurt, Germany, Avecto was founded by entrepreneurs Mark Austin and Paul Kenyon in 2008. Since that time, the company has demonstrated significant growth, serving a roster of over 600 enterprise clients and adding over 100 new customers per year for the past five years. Avecto has grown revenue over 50% on a compounded annual basis since 2012, and has grown profitably every year since inception.
Avecto offers the most effective and comprehensive product suite in endpoint prevention, distinguished by its ease of use, flexibility, and advanced security. Avecto's unique Defendpoint software protects computers and servers from malware and cyberattacks at the endpoint, by controlling and removing administrator rights (Privilege Management), dynamically allowing approved applications to run (Application Control), and isolating threats (Sandboxing). These security solutions alone are each effective, but tied together and backed by privilege management in one innovative solution, they provide a new standard in efficacy and endpoint prevention. Avecto's Defendpoint software currently safeguards over five million endpoints worldwide from evolving cyber threats.
Paul Kenyon, co-CEO at Avecto said: "To this point we have created a unique endpoint suite of security products and built an enviable business all without any external funding. Our integrated product suite provides three levels of protection delivered through a single, lightweight software agent - the leading and most effective offering in a sector that is growing in importance with the continued expansion of mobile workforces operating in multiple locations at the endpoints of their corporate networks.
"The investment from JMI will enable us to significantly boost our capabilities as we add even more talent to all areas of the business in order to continue to deliver high value solutions to our expanding customer base. JMI has significant experience in growing enterprise software companies which will be invaluable as we enter this new exciting chapter."
Mark Austin, co-CEO at Avecto added: "JMI's involvement will help us to take our innovative software to more organizations across the globe as we focus on building awareness and spreading the message that prevention is possible on the endpoint. The investment will also help to expedite our ambitious R&D plans, bringing our product roadmap to life."
"Enterprises are struggling to provide security on their endpoints while simultaneously ensuring a positive user experience," said Jit Sinha, General Partner at JMI Equity. "Avecto has solved a critical pain point with Defendpoint, which organizations around the globe recognize as effective security protection."
"As a market leader in this space, Avecto has seen significant success with its product platform, which has increasing global customer demand and huge potential for future growth. We look forward to working with the Avecto team to build on its reputation for innovation and quality," added Suken Vakil, Principal at JMI Equity.
Results International acted as exclusive financial adviser to Avecto and its shareholders on this transaction.