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ExtraHop To Be Bought By Bain Capital And Crosspoint In $900 Mln Deal

ExtraHop, a cloud-native network detection and response company, announced Tuesday that it has entered into a definitive agreement to be acquired by Bain Capital Private Equity and Crosspoint Capital Partners in a strategic transaction valued at $900 million.

The sale is expected to help lead the cloud-native cybersecurity company to extend its leadership position in the emerging network detection and response category.

The transaction would close in the summer of 2021, subject to customary closing conditions, including receipt of regulatory approvals.

Following the deal closure, ExtraHop CEO Arif Kareem and co-founders Jesse Rothstein, Chief Technology Officer, and Raja Mukerji, Chief Customer Officer, will continue in their respective roles. Rothstein and Mukerji will also remain significant investors in the company.

According to research from IDC, ExtraHop is among the top three players in network detection and response or NDR, the second fastest growing segment of the cybersecurity market.

ExtraHop noted that it is the first dedicated investment made from Bain Capital Fund XIII, the firm's latest flagship $11.8 billion private equity fund.

David Humphrey, a Managing Director at Bain Capital Private Equity, said, "As the events of the last few weeks make crystal clear, cybersecurity is now a mission-critical requirement in the strategy and operations of every organization on the planet, with enormous implications for financial and reputational well-being. We believe that network detection and response is the next major cybersecurity segment and that ExtraHop has the best enterprise technology in the space."

In the deal, Qatalyst Partners is serving as the exclusive financial advisor to ExtraHop, and Morgan Stanley & Co. LLC is serving as the financial advisor to Bain Capital and Crosspoint Capital.

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