Application Security Software Vendor (AppSec) Veracode valuation has more than doubled since 2018

Application Security Software Vendor (AppSec) Veracode valuation has more than doubled since 2018

private equity firm Support Associates has invested in truecode At a $2.5 billion valuation, the application security software company is now looking to make acquisitions.

This is the 276th technology M&A deal that MSSP Alert and its sister site ChannelE2E have covered so far in 2022.

Previous majority owner of Veracode: private equity firm Thomas Bravo — will retain a minority stake in the application security software company, all parties said. Quick math reveals that Veracode’s valuation has more than doubled since November 2018, when Thoma Bravo acquired Veracode from Broadcom with a valuation of 950 million dollars.

Veracode develops application security testing software tools. Veracode’s 2,600 customers scanned more than 53 billion lines of code and fixed more than 71 million security flaws, the company says.

On the partner front, Vericode in 2021 launched the Veracode Technology Alliance Program (TAP). The program is designed to make it “easier for organizations to deploy, manage and scale their software security programs, reducing friction and speeding time to market. Early members include Accurics, Imperva, ServiceNow, and ThreadFix, among others.

Veracode Seeks Security Acquisitions

Veracode currently has approximately 725 employees. Going forward, Veracode plans to expand both organically and through acquisition, CEO Sam King said in a prepared statement. The expansion effort will include new hires in engineering, product management, marketing, sales and customer success. King said:

“What we do has never been more crucial. The confluence of digital transformation, the complexity of the software supply chain, and the strengthening of the regulatory environment puts software security firmly in the spotlight. We are grateful for Thoma Bravo’s association over the past three years and look forward to our next chapter with TA. Together, our goal is to accelerate our vision to deliver the most comprehensive software security platform that meets the needs of both development and security teams by enabling them to build and deliver secure software at the speed business demands.

We are committed to our mission, strategy and product vision, and are excited to partner with TA, leveraging their significant experience investing in enterprise software companies and track record in scaling growing businesses, to bring that vision to life. We plan to invest in expanding our product portfolio through organic development and strategic mergers and acquisitions, as well as accelerating the expansion of our global footprint and growth, while maintaining the strong business fundamentals we have achieved in recent years.”

Added Jason Werlin, CEO of TA Associates:

“TA recognizes the tremendous market opportunity for Veracode, driven by the need to secure software and educate developers. We believe that Veracode’s heritage and sustained leadership position, coupled with the breadth and depth of its portfolio, uniquely position the company to drive the next wave of growth in the application security market. TA is pleased to partner with the Veracode management team and Thoma Bravo in the next phase of the company’s journey.”

Noted Seth Boro, Managing Partner of Thoma Bravo:

“Over the past three years, Veracode has expanded its platform, expanded its market presence and established a clear track record of sustained innovation. In today’s digital world, cybersecurity solutions are more critical than ever, and Veracode continues to drive innovation while helping solve customers’ toughest security needs. We are very proud of what Veracode has accomplished under our majority ownership and look forward to continuing to support Veracode as it enters its next phase of growth in partnership with TA.”

TA Associates: Private Equity and Security Expertise

Private equity firm TA Associates is well known in the software, security, and MSP industries. The company’s key investments and/or ownership interests include:

TA Associates focuses on five industries: technology, health care, financial services, business and consumer services. Typical investments involve profitable and growing companies. The firm has raised $47.5 billion in capital since its founding in 1968.

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