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Optiv IPO halted by private equity purchase

06 Dec 2016 4:01 PM | Molly Wendell (Administrator)

This article first appeared in the Denver Business Journal.
http://www.bizjournals.com/denver/news/2016/12/06/optiv-ipo-halted-by-private-equity-purchase.html


The IPO of Denver-based cybersecurity company Optiv Security Inc. has been canceled and it will stay privately held after private equity firm KKR became the majority owner of the business.

Optiv and New York City-based KKR announced a definitive agreement for the purchase Tuesday morning. Financial terms were not disclosed.

Dan Burns, CEO and co-founder of Optiv Security Inc.Dan Burns, CEO and co-founder of Optiv Security Inc.

The purchase reverses Optiv’s plan to go public on the New York Stock Exchange in coming weeks. The company filed IPO paperwork last month with the U.S. Securities and Exchange Commission.

Optiv sells consultation services as well as cybersecurity products that it or 400 partner companies create. It says it’s the largest company of its kind focused on solely cybersecurity.

KKR is buying the majority of Optiv from its existing private equity owners, including Blackstone, a large private equity company also in New York City. Blackstone retains a minority stake in Optiv following KKR’s purchase, the companies said.

"This new investment from KKR will enable our company to better help global clients address their full range of cyber risk and security needs in a customized and integrated fashion," said Dan Burns, CEO and co-founder of Optiv. "We are excited about this agreement and look forward to working with KKR to become the world’s most advanced, most comprehensive and most trusted partner for cyber security solutions.”

Prior to selling the controlling stake to KKR, Optiv was poised to be the first major IPO in Denver tech circles since Boulder-based Zayo Group.

Now it's the latest example of large private equity funds making big investments in Denver tech companies.

“We have been following the cyber security sector very closely over the past several years and believe Optiv represents an attractive investment opportunity given its market leadership as a critical partner and advisor to the Global 1000,” said Herald Chen, co-head of KKR’s technology, media & telecom investment team. “For KKR, this investment is premised on partnering with an awesome management team to build Optiv into a global security powerhouse by accelerating investment in Optiv's product and service capabilities and expanding its presence across the U.S. and internationally."




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