Semiconductor and data technology producer Intel has exited Venafi, a US-based identity management technology provider in which private equity firm Thoma Bravo has just acquired a majority stake.
The transaction valued Venafi at $1.15bn and growth equity firm TCV and venture capital firm Foundation Capital were the only investors identified by the company as retaining stakes.
Venafi has developed cybersecurity software that lets users manage the machine identity verification system through which electronic systems identify each other, on premises and across virtual, cloud, mobile and internet-of-things devices.
Jeff Hudson, Venafi’s chief executive, said: “Humans use usernames and passwords to identify themselves to machines. Machines also need to identify themselves to each other, but they use machine identities.
“Venafi created the category of machine identity management and our strategic vision remains unchanged: we are committed to creating a world where all machine identities are trusted and protected.”
The company had raised approximately $172m prior to the deal, most recently securing $100m at a reported valuation of $600m, in a late 2018 round led by TCV and backed by QuestMark Partners and NextEquity Partners.
QuestMark Partners had led Venafi’s previous round three years earlier, when it raised $39m from a consortium also including Intel’s investment arm, Intel Capital, as well as Silver Lake Waterman and unnamed existing backers that may have included Foundation Capital, Origin Partners, Mercato and Pelion Venture Partners.
Kirkland & Ellis is legal counsel for Thoma Bravo while JP Morgan Securities is Venafi’s financial adviser on the transaction.
