“I couldn’t be more thrilled to welcome the Apax Partners team to Herjavec Group. Over the past seventeen years, HG has remained steadfast in our mission to make enterprises around the world more secure. We have succeeded in that effort by developing an industry-leading 24/7 Managed Security Services practice, by advancing our proprietary IP, by diversifying our offerings to include Advisory, Managed Detection & Response, Identity and Incident Response services, and by hiring what I fundamentally believe is the very best team in the world. This acquisition and the growth funding that results is a testament to our entire team, and to our loyal customer base who has entrusted us with their mission critical assets. I am excited for this next phase in our growth trajectory as we continue to earn their trust by expanding our localized support models, deepening our Managed Security Services offerings and furthering our platform development to drive incremental automation, efficiency and security ROI.”
– Robert Herjavec, Founder & CEO of Herjavec Group
“Under Robert’s leadership, HG has grown into an impressive business, providing critical Cybersecurity solutions with a special focus on customer service. In an increasingly complex Cybersecurity and IT market, where we are seeing ever more sophisticated cyber-crime, HG is a trusted partner that relieves the burden from internal enterprise security teams. We are excited to partner with Robert and team as we look to drive the business forward, investing in continued product innovation and growth acceleration while maintaining the company’s number one priority: its customer centricity.”
– Rohan Haldea, Partner at Apax Partners
Transaction Overview
- On February 11th, 2021, funds advised by Apax Partners (the "Apax Funds") today announced the majority acquisition of Herjavec Group ("HG"), an award-winning global Managed Security Services Provider (MSSP) and cyber operations leader. Founder & CEO, Robert Herjavec, will remain as a significant stakeholder and the firm's active Chief Executive Officer (CEO). The financial terms of the transaction (which is subject to applicable regulatory approvals) were not disclosed
- Herjavec Group is a Toronto-based provider of cybersecurity products and services to enterprise organizations. Founded in 2003 by Robert Herjavec, star of ABC's Emmy award-winning "Shark Tank," HG has been recognized as one of the world's most innovative cybersecurity companies with the sole mission of protecting enterprises globally from evolving cyber threats
- Earning accolades from industry analysts including Gartner, Forrester, IDC and MSSP Alert, Herjavec Group has developed a reputation globally for attracting top security talent, and continuously advancing its cyber services which include Cybersecurity Advisory Services, Architecture & Implementation of best-of-breed technologies, Identity & Access Management, 24/7 Managed Security Services, Threat Management, and Incident Response
- Herjavec Group has offices and Security Operations Centers across the United States, United Kingdom, Canada and India, with more than 300 employees providing critical cybersecurity solutions with a special focus on customer service
- Apax Partners LLP is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer
- Dentons US LLP served as legal counsel to Herjavec Group and Kirkland & Ellis LLP served as legal counsel to Apax. UBS Investment Bank and Stifel served as financial advisors to Apax
Transaction Significance
- The Apax Funds, in partnership with HG's management team, will look to build on the company's impressive growth rate by accelerating international expansion efforts, augmenting HG's talented team with additional threat & identity resources, and further advancing the "HG Identity" and "HG SOAR" proprietary platforms
- The Apax Tech team have a deep understanding of the cybersecurity market through the Apax Funds' prior investments in Sophos, a world-leader in the space and Coalfire, a cybersecurity advisory business which was acquired by the Apax Funds in 2019
- This transaction positions Herjavec Group as a trusted partner that relieves the burden from internal enterprise security teams in an increasingly complex cybersecurity and IT market, where organizations are seeing ever more sophisticated cyber-crime
- The growth funding enables Herjavec Group to expand localized support models, deepen Managed Security Services offerings, and further platform development to drive incremental automation, efficiency and security ROI
- Herjavec Group's expansion has included organic growth as well as strategic tuck-in acquisitions, such as Securience, an IT security consulting firm with identity and access management (IAM) expertise
- The acquisition positions Apax to build a leading cybersecurity services portfolio, with Herjavec Group joining Coalfire in Apax's stable of cybersecurity firms
Momentum Cyber's Role
- Momentum Cyber served as exclusive financial & strategic advisor to Herjavec Group
- This transaction demonstrates Momentum Cyber's deep domain expertise in cybersecurity M&A and its proven track record advising leading MSSP and managed security services providers on strategic transactions with global private equity firms
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.