https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Strategy


Endpoint Security: Sophos Acquired In Private Equity Deal

  • Written by The VAR Guy 1
  • May 4, 2010

The security software market continues to attract investors. The latest example: Apax Partners has acquired majority interest in Sophos, the endpoint security and data leakage prevention (DLP) software provider. The deal values Sophos at US$830 million, or more than three times annual revenues. Here’s a look at the agreement and the implications for solutions providers.

No doubt, Sophos has been in growth mode. And Channel Chief Christopher Doggett has been preparing an enhanced partner program that promotes recurring revenue opportunities to MSPs (managed services providers) and VARs. The VAR Guy hopes to dig for more partner program details during an anticipated meeting with Doggett on May 5.

Still, Sophos competes in a crowded market — where established giants like Symantec and McAfee are reaffirming their channel commitments; Trend Micro is building out more recurring revenue offerings; and upstart Kaspersky Lab has been growing like a weed.

Dollars and Cents

With all that competition in mind, Sophos was considering several financial moves. Sources say the company had kicked around a potential IPO in recent years but the recession sidetracked those plans. Fast forward to the present and the private equity route apparently offered less risk.

Enter Apax Partners, a private equity investment firm. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. According to a prepared statement from Steve Munford, CEO of Sophos.

“Apax’s financial backing, combined with Sophos’s deep understanding of security and data protection is great news for our customers, prospects and partners. It is also a testament to the efforts of all those who helped bring Sophos to where it is today. ”

By the Numbers

Sophos is quick to point to some key milestones as part of the Apax agreement. According to a spokesperson for Sophos, the company has:

  • 20+ years of impressive performance, strong cash flow and 19% cumulative annual growth over the past 3 years
  • $260 million in 2010 revenues and double digit growth that is expected to outpace the market
  • #3 behind only Symantec and McAfee in Endpoint Suites
  • #2 behind only McAfee in Data Protection Suites
  • And Sophos has over 100 million users in more than 150 countries
  • In its fiscal year ended March 31, 2010 (unaudited), Sophos had billings in excess of $330 million (compared with $273 million in FY 2009), revenue in excess of $260 million (FY2009: $213 million) and generated unlevered free cash flow of approximately $55 million (FY2009: $40 million)

Next Moves

Still, there’s more work to be done. In a recent FastChat video interview, VP of Corporate Strategy Arabella Hallawell described a “consumption gap” in the endpoint security market:

Naturally, Sophos and Apax Partners hope to close that consumption gap.

Sign up for The VAR Guy’s Newsletter; Webcasts and Resource Center; and via RSS; Facebook; Identi.ca; Twitter and VARtweet.


Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Programs Leadership Security Strategy Videos

Related


  • 501 Somewhere Logo
    It’s 501 Somewhere: Janet Schijns on Transformational Leadership
    Schijns talks about what it takes to be a true leader, transformational technology, and her three steps for success.
  • Two cloud-shaped hands shaking among other clouds in the sky.
    IBM Buys Cloud MSP Taos for Expertise in AWS, Azure, Google
    Channel partners will be able to take advantage of the combined companies’ hybrid cloud capabilities.
  • ThinkPad X1 Titanium Yoga
    Lenovo to Ship Its Thinnest ThinkPad Yet with X1 Titanium Yoga
    Lenovo's expanded commercial line includes revamped ThinkBooks and AR glasses.
  • Ransomware and malware
    Help Your Customers Mitigate Malware: Viruses, Worms, and Trojans…Oh My!
    With the right antivirus protection, your customers can better detect and prevent the spread of malware.

One comment

  1. Avatar Miranda Costa June 15, 2010 @ 8:26 pm
    Reply

    http://www.thevarguy.com‘s done it once more! Incredible post.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • How Secure is Your Cloud Data?
  • Tenable Research: Publicly Known Vulnerabilities Increased in 2020
  • McAfee Employees Getting Pink-Slipped in Likely 'Belt-Tightening'
  • Microsoft Launches Surface Pro 7+ for Business, Sold Only via Channel

Galleries

View all

New, Changing Partner Programs: AWS, Tech Data, Avaya, Verizon

January 11, 2021

Industry Perspectives

View all

The Importance of Being Security-Centric

January 22, 2021

Cyberattacks: Threat Hunters Conquer Unpredictability with 3 Measures

January 21, 2021

The Right Data Migration Tool Helps Schools Move to Cloud During COVID Crisis

January 19, 2021

Webinars

View all

Who’s Behind the Mask? Hacker Personas Explained

January 26, 2021
  • 2

Your Network Perimeter Has Changed

February 18, 2021

In Case of Emergency: The Importance of Proactive Critical Event Management

February 23, 2021

White Papers

View all

Why Subscription Business Model

January 15, 2021

The Ultimate MSP Guide to Sales Efficiency

January 14, 2021

Eight Reasons Why MSPs Need IT Industry-Specific Sales Tools

January 14, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Native @MicrosoftTeams integration coming to @SAP apps. dlvr.it/RrKz34 https://t.co/tM7SQaaOHl

January 26, 2021
ChannelFutures

#Biden, @CompTIA both launch big #cybersecurity efforts (separately). dlvr.it/RrKr54 https://t.co/hXEw2CGUMZ

January 25, 2021
ChannelFutures

.@HPE appoints new head of worldwide distribution. #cloud dlvr.it/RrKJLT https://t.co/FW0OUTDJFF

January 25, 2021
ChannelFutures

Following its acquisition of SAP specialist Pioneer B1, new @SapphireSystems GM reveals "buy and build" growth stra… twitter.com/i/web/status/1…

January 25, 2021
ChannelFutures

.@exabeam, @VulcanCyber, @ntti3, @Vectra_AI, @Lookout and @valtixinc give high marks to @POTUS' federal… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

Judge sides with @AWScloud against #Parler; @SADAsystems gets AI-centric board member; @EnsonoIT, @navisite get… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

2021 may be the year of the #security-centric #MSP @BarracudaMSP #remoteworking #ITsecurity #dataprotection #RMM… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

Adding #AIOps and #AI-driven WANs will help IT administrators move forward, says @MistSystems.… twitter.com/i/web/status/1…

January 22, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X