Vector Capital Acquires Majority Ownership of WatchGuard Technologies
Today, WatchGuard announced that Vector Capital, a leading private equity firm specializing in transformational investments in established technology businesses, closed the deal to acquire interests previously owned by other co-investors, and become the company’s majority shareholder.
WatchGuard has driven consistent innovation and growth in the cybersecurity space, resulting in very 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 trajectory. Investment in organic growth and M&A will prioritize extending the capabilities of the company’s platform in 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’ve already had tremendous success together, and with their 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.” If you want to hear more about it from Sandy, watch this video.