Private equity firm Hellman & Friedman has agreed to acquire a majority stake in Checkmarx, a US-based software security technology provider backed by enterprise software provider Salesforce, at a $1.15bn valuation.
Founded in 2006, Checkmarx has developed a platform that reduces and fixed vulnerabilities in software applications during development process. It can be deployed on premises, in the cloud or in hybrid environments and is used by more than 1,400 customers across 70 countries.
Growth equity firm Insight Partners supplied $48m in series C funding for the company in 2015, adding to $8m in series B financing provided by an unnamed private equity firm two years earlier. It will retain a minority stake once the Hellman & Friedman deal closes.
Reports at the time suggested Salesforce and XT Investments, a shipping subsidiary of investment holding group Ofer Brothers, may have also taken part in the series B round, after both had injected an undisclosed amount in Checkmarx through a 2011 series A transaction.
Tarim Wasim, a partner at Hellman & Friedman, said: “As cybersecurity threats continue to intensify, we strongly believe that embedding security early in the software development lifecycle is critical.
“Only one company – Checkmarx – has the breadth of products, developer-centric DNA, and culture of relentless innovation to serve the entire software security market. We look forward to building on Checkmarx’s tremendous success to date and supporting the company’s rapid growth in the years ahead.”
