Private equity firm Welsh, Carson, Anderson & Stowe (Welsh Carson) and the executive management of security-as-a-service solutions provider Alert Logic have acquired majority shareholder interest in the SaaS company from a group of venture capital firms.
The deal provides the capital from Welsh Carson to accelerate growth through geographic and product line expansion, expanding into international markets over the next few years.
Michael Donovan, a Welsh Carson general partner, said in a prepared statement that Alert Logic has positioned itself as a leader in the cloud market and with a broad of portfolio security solutions for any cloud environment.
"These unique assets combined with a strong management team make Alert Logic an ideal platform for capturing market share in one of the fastest-growing segments of the global IT industry," he said.
Alert Logic Chairman, President and CEO Gray Hall, who will continue to run the business, said in his prepared remarks that the transaction will enable Alert Logic to increase the scale of the business, while meeting the high demand for IT security.
"Our strategic focus remains intact and this transaction brings improved access to capital and other resources, positioning us to expand our geographic footprint, strengthen our team and further accelerate growth in our market-leading cloud security offerings," Hall said.
Both companies expect the transaction to close by the end of August 2013.