United States. WatchGuard Technologies entered into a definitive agreement with Vector Capital to make a new equity investment in the business, acquire the stakes previously held by Francisco Partners and other co-investors, and become the majority shareholder of the company. Financial terms have not been disclosed.
During the joint ownership of Vector Capital and Francisco Partners for more than a decade, WatchGuard went from being a trusted network security provider to a comprehensive cybersecurity platform provider. Today, unified security platform, the company's unified security platform, enables more than 17,000 MSPs to protect the environments, users and networks of more than 250,000 enterprises worldwide.
Building on its previous ownership, Vector Capital is well positioned to partner with WatchGuard's management team to further accelerate the company's growth. WatchGuard will continue to invest in critical areas including, but not limited to, cloud transformation, Secure Access Service (SASE), Extended Discovery and Response (XDR), Managed Discovery and Response (MDR), and further innovation in automating and simplifying security for MSPs.
"Vector strongly believes in WatchGuard's product portfolio, partners, employees and vision. This transaction is a testament to WatchGuard's current success and the opportunities that lie ahead," said Prakash Panjwani, CEO of WatchGuard Technologies.
"We are thrilled to continue the journey we began with WatchGuard employees, partners and customers more than a decade ago," said Alex Slusky, Founder, Ceo and Chief Investment Officer, Vector Capital.
The transaction is expected to close by the end of the third quarter of 2022, subject to customary conditions. Barclays acts as financial advisor to WatchGuard Technologies. Sidley Austin LLP and Richards, Layton & Finger are acting as legal advisors to WatchGuard Technologies. Kirkland & Ellis LLP is acting as legal advisor to Vector Capital.
