Blackstone to Increase Tech Footprint with Purchase of Accuvant
- Mar 13, 2014
With $79 billion in assets under management, Blackstone may be the largest real estate private equity firm in the world, but it’s certainly not all about bricks-and-mortar for the investment and advisory firm. Acting through a fund it manages on behalf of its private equity investors, Blackstone just made a move to expand its presence in the technology sector with the signing of a definitive agreement to acquire a majority stake in Accuvant, a top information security solutions and services provider.
Sverica International Inc., a shareholder in Accuvant since 2008, is the seller. The private equity investment firm, along with Accuvant management, will invest alongside Blackstone.
Founded in 2002, Accuvant supplies information security services and solutions for enterprise-class organizations across North America. With Blackstone behind it, the company will have access to the requisite funds for expediting and enlarging its expansion endeavors.
For Blackstone’s part, taking a controlling interest in the information security arena leverages its technology capabilities. “With this investment, we are excited to build upon Blackstone’s growing information security expertise as the sector becomes increasingly relevant across industries,” David Johnson, senior managing director in Blackstone’s Private Equity Group said in a prepared statement.
The investment also marks the latest in a series of steps Blackstone has taken to amplify its presence in the technology sector. Over the last year, the company has made a host of tech investments through its private equity funds, including the pending purchase of Pactera Technology International Ltd., China’s largest IT outsourcing company, and a deal for the $750 million acquisition of a minority interest with GIC Private Ltd. in Kronos Inc., global provider of cloud-based workforce management software and services.
The Accuvant purchase can also be perceived as a sign of the times. As Dan Burns, Accuvant co-founder and CEO, stated in a press release, “Security has transcended everyone and everything–from people to companies to nations.” Blackstone’s acquisition of a stake in Accuvant is on track to close in April.