ExtraHop has entered into a definitive agreement to be acquired by Bain Capital Private Equity and Crosspoint Capital Partners in a transaction valued at $900 million.
The transaction is expected to close in the summer of 2021 and is subject to customary closing conditions, including receipt of regulatory approvals.
ExtraHop CEO Arif Kareem and co-founders Jesse Rothstein and Raja Mukerji will continue in their respective roles as chief technology officer and chief customer officer. Rothstein and Mukerji will also remain significant investors in the company.
The company’s growth has far exceeded that of network detection and response (NDR), which research from IDC shows is the second-fastest growing segment of the cybersecurity market.
Kareem said that by combining their team, market need, and technology with the deep domain expertise and resources of Bain Capital and Crosspoint Capital, ExtraHop has the opportunity to grow faster and accelerate our innovation to help our customers defend their operations from even the most advanced threats.
“We believe that network detection and response is the next major cybersecurity segment and that ExtraHop has the best enterprise technology in the space,” said David Humphrey, a managing director at Bain Capital.
Max de Groen, also a managing director at Bain Capital, said ExtraHop’s approach is uniquely positioned to help enterprises defend against the most advanced cyber threats and address the security challenges of multi-cloud environments, enterprise IoT, and hybrid workforces.
De Groen added that ExtraHop’s is the first dedicated investment made from Bain Capital Fund XIII, the firm’s latest flagship $11.8-billion private equity fund.
Also, Crosspoint Capital managing partner Greg Clark said that ExtraHop is among the first investments in Crosspoint Capital Fund I, a $1.3-billion private equity fund focused on the cybersecurity, privacy, and infrastructure software sectors.
