Sophos has reached a definitive agreement to sell a majority interest in the company to Apax Partners, in a transaction valuing the company at US$830 million. Â When the transaction is completed, the founders of Sophos will retain a significant minority shareholding. Â TA Associates, a minority shareholder in Sophos since 2002, will sell its full interest to Apax in this transaction.
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The Company has over 100 million users in more than 150 countries, with customers including Cisco, Marks and Spencer, Heinz and Harvard University. In its fiscal year ended March 31, 2010 (unaudited), Sophos had billings in excess of $330 million (compared with $273 million in FY 2009), revenue in excess of $260 million and generated free cash flow of approximately $55 million.
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Steve Munford, CEO, Sophos, said, “As the market continues its migration from point solution to tailored, unified security suites, Sophos's strategy to offer the world's most resilient, cost-effective solutions without any additional complexity remains key.”
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Salim Nathoo, Partner in the Tech & Telecom team, Apax Partners, said,  “We identified the security software space as an attractive investment area for us, given its rapid growth driven by ever-increasing malware threats and high barriers to entry.  Sophos is a very strong platform and is gaining market share. Apax’s strong track record and industry-specific knowledge in the technology sector makes Sophos a perfect fit and we look forward to working closely with this high-growth business going forward.”
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Ajit Nedungadi, Managing Director , TA Associates, said,  “We have enjoyed working with the founders and management team of Sophos to further build on that foundation, helping them grow the company six-fold since 2002.”
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Alongside Apax Partners, the current shareholders will retain significant stakes in the business, including Dr. Jan Hruska and Dr. Peter Lammer, who co-founded the company in 1985.
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