Silicon Valley-based cybersecurity company Skybox Security has announced the signing of a definitive agreement to receive a $150 million growth equity investment in a fundraising round led by private equity firm CVC Capital Partners. CVC’s Growth Fund contributed $100 million, with participation from Pantheon with a $50 million investment.
As part of the deal, CVC Growth Partners managing partners Jason Glass and John Clark will join Skybox’s board of directors.
Skybox builds cybersecurity management software that uses analytics to prioritize an organization’s risk exposures and recommend action to address those exposures. The fifteen-year-old tech company says it secured a 62% jump in sales and a 59% increase in product transactions in the first half of 2017 over the same period last year. From 2014 to 2016, Skybox says it had an annual growth rate (CAGR) of 46% and positive cash flow throughout the entire period. Clients include Global 500 companies and government agencies.
“Skybox’s track record is impressive and there is clear demand for their solution,” said CVC’s Jason Glass.
The software company will reportedly use the new funding to accelerate sales and marketing, customer care and research and development.
Skybox CEO Gidi Cohen says the investment will help accelerate innovation, “focusing on some of the most critical areas, such as security management for the cloud and the OT networks that control critical infrastructure.”
A slice of the funding will also be utilized for potential mergers & acquisitions as the firm doubles down on the $10 billion market opportunity in cybersecurity management.
CVC Partners, a Luxembourg-based private equity firm focused on software and technology-enabled services businesses closed a $17.89 billion investment vehicle CVC Partners VII in June.