H&F Buys Checkmarx

Hellman & Friedman has agreed to acquire software security focused Checkmarx from Insight Partners at a valuation of $1.15 billion. Insight Partners will continue to own a minority interest in the business.

Checkmarx develops software that is used to identify, fix and block security vulnerabilities in web and mobile applications. The Tel Aviv-based company has more than 1,400 customers in 70 countries, including more than 40 of the Fortune 100 and half of the Fortune 50. Checkmarx, with more than 700 employees, was co-founded in 2006 by CEO Emmanuel Benzaquen and CTO Maty Siman.

“This acquisition is a clear testament to Checkmarx’s inimitable global team who have ensured our leadership position in software security, as well as to the significant role our technology plays in the broader cybersecurity industry,” said Mr. Benzaquen. “With more corporations leveraging software development to scale their businesses than ever before, executives are acutely aware of the increased risks caused by software exposure.”

“We are thrilled to be joining forces with Emmanuel, Maty, and the entire Checkmarx team,” said Tarim Wasim, a partner at Hellman & Friedman. “As cybersecurity threats continue to intensify, we strongly believe that embedding security early in the software development lifecycle is critical. Only one company – Checkmarx – has the breadth of products, developer-centric DNA, and culture of relentless innovation to serve the entire software security market. We look forward to building on Checkmarx’s tremendous success to date and supporting the company’s rapid growth in the years ahead.”

“Checkmarx technology is mission-critical to any business that is developing or integrating software, and from even before we invested in the company in 2015, we have been continuously impressed by the leadership to come out of this team of game changers and innovators,” said Richard Wells, a managing director at Insight. “Maty and Emmanuel are two of the cybersecurity industry’s top operators and we have been thrilled to have supported their stratospheric growth over the last five years. We will remain active supporters and vocal champions of the Checkmarx team.”

New York-based Insight Partners makes expansion and late-stage investments in software, e-Commerce, internet and data-services businesses. Founded in 1995, Insight has over $20 billion of assets under management, invested in more than 300 companies, and completed more than 200 transactions for its portfolio companies.

San Francisco-headquartered Hellman & Friedman invests from $300 million to $1 billion in companies across a range of industries including software & technology, financial services, healthcare, retail & consumer, and other business services. The firm was founded in 1984 and has raised over $50 billion of capital, invested in over 90 companies, and is currently investing its $16.5 billion ninth fund.

Checkmarx’s financial advisors on this transaction were Evercore Group (as the lead) and Stifel. Hellman & Friedman was advised by RBC Capital Markets.

software security