PE house realises 6.5x return on Deep Secure
Posted on June 16, 2021 by Jonathan Symcox
YFM Equity Partners has sold its shareholding in Deep Secure for an undisclosed sum, realising a 6.5x return.
The company based in Malvern, Worcestershire has been sold to Forcepoint Federal LLC, a global cyber security solutions business specialising in serving government and critical infrastructure clients.
The transaction is subject to regulatory review and customary closing conditions and is expected to close in or before August 2021.
Deep Secure provides cyber security defence solutions which do not rely on being able to detect threats but instead transforms content to render it completely safe.
Dan Turner, CEO of Deep Secure Limited, commented: “Deep Secure has scaled strongly with YFM’s support, developing an exciting and ground-breaking approach to cyber security.
“We have worked very closely with YFM, who have been a hugely supportive partner, to invest in our technology as well as the sales and operational capabilities of the business to execute our successful strategy.”
Eamon Nolan, partner at YFM, stated: “We backed an ambitious management team at Deep Secure that has delivered on its strategy to develop a market-leading approach to cyber security.
“Deep Secure has developed exciting technology in the increasingly vital area of cyber defence and has grown revenues and profits significantly. We are delighted to have delivered strong returns for our investors with this exit.
“Forcepoint is the ideal strategic acquirer of Deep Secure to enable both businesses to continue supporting the UK Prosperity agenda, to continue to develop the product range their customers need, and to address the ever increasing need for security and protection to a wider audience.”