WatchGuard Technologies announced that Vector Capital closed the deal to acquire interests previously owned by other co-investors.
Under the new agreement, Vector Capital becomes the majority owner of WatchGuard and IPW, a European fund focused on investments in software companies and a previous investor in WatchGuard, retains its interest in the company.
WatchGuard has driven consistent innovation and growth in the cybersecurity space, resulting in strong financial returns for its investors, including Vector Capital. Now as the majority shareholder, Vector Capital is ideally positioned to back the next phase of WatchGuard’s growth trajectory. Investments will focus on accelerating the company’s capabilities across cloud transformation, secure access service edge (SASE), extended detection and response (XDR), managed detection and response (MDR), and further innovation in security automation and simplification for MSPs.
“Vector Capital has been an excellent partner over the last decade, and is intimately familiar with the company, employees, partners and our vision to be the security provider of choice to the MSP community,” said Prakash Panjwani, CEO of WatchGuard Technologies. “We have already had great successes together, and with this renewed investment, we are doubling down on empowering the MSP community with increased growth and platform innovation.”
Vector Capital has helped guide the company’s transformation from a trusted network security vendor to a full-fledged cybersecurity platform provider. Today, the WatchGuard Unified Security Platform enables more than 17,000 MSPs to protect the environments, users and networks of more than 250,000 businesses worldwide.
“We believe that WatchGuard is uniquely positioned to take advantage of two major market forces – the rise of the MSP as the dominant and fastest growing source of cybersecurity, and the maturation of platform-based security offerings that enable clients to embrace SASE and XDR functionality,” said Sandy Gill, Managing Director of Vector Capital. “The company’s success and value are testaments to the tremendous demand for MSP-delivered advanced security services. WatchGuard’s technology, team and partner ecosystem have set a new standard for security delivery and we are committed to ensuring that WatchGuard has the resources to continue leading the cybersecurity landscape for years to come.”
Barclays served as the financial advisor to WatchGuard Technologies. Sidley Austin LLP and Richards, Layton & Finger served as legal counsel to WatchGuard Technologies. Goldman Sachs & Co. LLC acted as financial advisors to Vector Capital. Kirkland & Ellis LLP served as legal counsel to Vector Capital.