Sept. 3 (Bloomberg) -- Veritas Capital, the New York-based private-equity firm that targets companies providing government services, agreed to buy BeyondTrust Software Inc. for $310 million.
BeyondTrust, based in Phoenix, is a closely held information technology security company that develops products to stymie hackers and curtail identity theft.
“The motivation is to build a world class security- software company,” Kevin Hickey, president and chief executive officer at BeyondTrust, said in an interview. “Veritas was looking for a strong software platform, and that’s a differentiating factor for us. We want to get deeper into the federal government space.”
BeyondTrust’s customers include eight of the world’s 10 largest banks, eight of the 10 largest aerospace and defense firms and all five branches of the U.S. military, according to its website. A representative for Veritas didn’t respond to a request for comment.
Insight Venture Partners, another New York-based private- equity firm, has been an investor in BeyondTrust since 2006.
“Insight has been a fabulous partner for a lot of years,” Hickey said. “We interviewed with a number of the private- equity players out there, and we really got excited about Veritas. They do only a few deals a year, so they’re very focused, and they understand our market.”
Veritas also owns CRGT Inc., which provides cyber-security services to the federal government, according to the firm’s website.
Evercore Partners Inc. acted as BeyondTrust’s financial adviser.