RESTON, Va., May 12, 2011 /PRNewswire/ -- Updata Partners, a leading technology-focused growth equity firm, today announced that it has entered into a definitive agreement to acquire the Internet Security Business Unit (the "ISBU") of CA Technologies. The ISBU has a 10-year history of providing endpoint security solutions -- including anti-malware and anti-virus -- to consumers and businesses worldwide. More than 60,000 businesses across a wide spectrum of industries have deployed the unit's solutions, including some of the most sophisticated buyers of security technology, and four million consumers worldwide use the ISBU's products. IDC recently ranked the ISBU as among the top ten providers of corporate endpoint security solutions(1), and the NPD Group recently ranked CA Technologies among the top ten retail publishers of security software(2). Financial terms of the agreement, which is expected to close in June, were not disclosed.
"CA Technologies is one of the top software companies in the world, with a record of innovation and best-in-class solutions," said James Socas, General Partner at Updata Partners. "We are delighted to be able to work with them, with the ISBU's strong team, and on behalf of their customers and partners, to create a new leader in the information security market."
Updata Partners is a leading technology-focused growth equity firm with over $500 million in capital under management and a ten year track record of success investing in the software, technology services and digital media industries. Recent security industry investments by Updata and its partners include M86 Security (a leading secure web gateway provider), Alert Logic (a leading cloud security vendor), CoreStreet (acquired by ActiveIdentity), SwapDrive (acquired by Symantec), and e-Security (acquired by Novell).
"This is a win-win for CA Technologies and for our ISBU customers," said Jacob Lamm, executive vice president of CA Technologies. "Updata Partners will bring a broad set of resources and industry expertise to the business, while CA Technologies pursues its mission of empowering customers to fully leverage the cloud and other resources through new models of IT management."
This transaction does not affect CA Technologies enterprise security business, which is focused primarily on identity and access management software. CA Technologies will continue to invest in internal development and innovation to grow its leadership position in this critical sector.
The new company, which will be called Total Defense, Inc., will be formed as the security software market is entering a period of rapid change. The nature of threats is shifting from computer viruses and other malware driven by computer hackers to much more complex, multi-layered and dangerous threats driven by criminal intent. At the same time, the number of threats is growing exponentially. AV-Test.org has observed that the annual volume of unique malware increased from 1 million to 19 million in the past five years(3). As a result, IDC estimates the corporate endpoint security market will grow from $7.1 billion in 2010 to $9.9 billion in 2014(4).
About Updata Partners
Updata Partners is a leading technology-focused growth equity firm with over $500 million in assets under management. Updata invests in software, digital media, and technology services businesses with innovative intellectual property and market-leading solutions where the combination of the firm's financial backing and the operating expertise of its partners will accelerate growth. For additional information, visit Updata Partners at www.updatapartners.com.
Copyright© 2011 Updata Partners. All Rights Reserved. All other trademarks, trade names, service marks and logos referenced herein belong to their respective companies.
(1) IDC Worldwide Endpoint Security 2010 - 2014 Forecast (November 2010)
(2) The NPD Group / Retail Tracking Service, ranked on units April 2010 through March 2011
(3) AV-Test.org, January 2011 Report
(4) IDC Worldwide Endpoint Security 2010 - 2014 Forecast (November 2010)
SOURCE Updata Partners