N-able Exploring Sale With Barracuda Networks As One Possible Suitor: Report
One such company reportedly eyeing N-able is Campbell, Calif.-based cybersecurity vendor Barracuda Networks. Barracuda is owned by private equity firm KKR.
Sources familiar with the matter told Reuters that the Burlington, Mass.-based software vendor is participating in a sale process that attracts private equity firms.
N-able did not respond to multiple requests for comment when reached by CRN.
One such company reportedly eyeing N-able is Campbell, Calif.-based cybersecurity company Barracuda Networks, according to Reuters. Barracuda is owned by PE firm KKR after being acquired by PE firm Thoma Bravo for about $4 billion in 2022.
[Related: N-able CEO: ‘The Rallying Cry For 2024 Is Transformation’]
A spokesperson for Barracuda Networks declined to comment. KKR did not immediately respond to requests for comment.
John Holland, managing director of Corporate Finance Associates, said there are many reasons why a company might go private.
“The administrative burden of complying with federal securities regulations and reporting requirements can be very costly,” Holland told CRN in an email. “Large companies can afford that expense, but relatively small companies cannot afford that expense. Another reason is that sometimes private equity firms see a strategic value in a business that exceeds the value that the public market sees. For example, the private equity firm might view a particular business as being an ideal, synergistic match to one of the companies that are owned by the private equity firm.”
In 2021, N-able went public after spinning out from software firm SolarWinds, which had been acquired by Silver Lake and Thoma Bravo for $4.5 billion in 2016.
N-able, which has a market value of about $2.5 billion, reported its Q1 2024 earnings earlier this month with a 14 percent revenue increase year-over-year.
“It was a strong start to the year,” N‑able president and CEO John Pagliuca, said in the earnings call. “We saw broad-based demand across our growing software stack and advanced important initiatives across the business. Our MSP customers face significant pain points managing increasingly complex IT estates for their small and medium enterprise customers. We believe our multi-product platform is situated to solve these pain points and help MSPs grow their businesses. We aim to be the vendor of choice for MSPs everywhere and are eager to continue building on the results we delivered in the first quarter.”
For its first quarter, the company reported a total revenue of $113.7 million, representing zero percent year-over-year growth, or 13.7 percent year-over-year growth on a constant currency basis.
N-able stock rose almost 10 percent to $13.83 per share in Wednesday trading.