eSentire, Inc., a pure-play Managed Detection And Response (MDR) provider, has secured undisclosed amount growth equity from Warburg Pincus.
Evercore acted as exclusive financial advisor to eSentire. The transaction is expected to close in September following various approvals.
Financial terms were not disclosed. The deal was reportedly to be over US $100 million. It is not clear if the transaction is a new investment or an investment and recapitalization involving buying out existing investors.
eSentire has raised approximately $53 million including recent US $19.5 million Series D in February 2016 from Edison Partners, Georgian Partners, Cisco Investments, Northleaf Ventures Catalyst Fund, and Information Venture Partners.
New funds will be used to accelerate eSentire’s growth by expanding its technology services to existing clients and its outreach to more clients in new markets, as well as to provide liquidity to existing shareholders.
eSentire is regarded as the pioneer in managed cybersecurity services that detect and contain advanced threats that have bypassed all other security controls. The company began operations serving the demanding financial services market and has expanded rapidly to support other sectors including insurance, legal, healthcare, biopharma, engineering, technology, manufacturing and government agencies. eSentire’s best-in-class MDR solution leverages purpose-built technology, and highly trained security analysts to detect, investigate and rapidly resolve cyber threats in customers’ internal and cloud environments before they become business-impacting events.
“eSentire has established itself as the leading provider of managed detection and response within the competitive cybersecurity market, as evidenced by 26 consecutive quarters of growth,” said J.Paul Haynes, CEO of eSentire. “Our leadership team recognized that in order to enhance our leading position, we needed a partner that shared in our vision. I am pleased to say that we could not have found a better partner than Warburg Pincus, whose global reach, access to industry experts and extensive network will serve as a great catalyst for our future growth. We are excited that this investment will allow us to help more organizations mitigate the risks associated with cyberattacks.”
“With the ever-increasing complexity around cybersecurity and scarcity of security talent, more companies are seeking comprehensive managed services that proactively detect and respond to cyber threats in real time,” said Cary J. Davis, Managing Director, Warburg Pincus. “eSentire provides the most complete suite of technologies and services in the MDR market and has experienced industry-leading growth and impressive customer satisfaction. We are excited to partner with management to support the Company’s continued expansion and help them serve the complex cybersecurity needs of their customers.”
photo credit: eSentire