Frisco-based Netwrix announced it has received a strategic investment from Centerbridge Partners LP, a global multi-strategy private equity firm.

Netwrix, a cybersecurity vendor, said that TA Associates, a leading global private equity firm, remains the majority shareholder, with members of Netwrix’s senior management team and Updata Partners retaining minority positions in the business.

“Netwrix solutions help organizations of any size strengthen their security posture across all the primary attack surfaces: data, identity, and infrastructure, as well as ensure regulatory compliance,” Steve Dickson, CEO of Netwrix, said in a statement. “With Centerbridge and TA’s backing and technology acumen, we’re well positioned to address our customers’ mission-critical needs.”

Innovative software for complex data security challenges

Netwrix said its solutions help more than 13,000 organizations around the world identify and protect sensitive data to reduce the chance of a breach, and detect, respond to, and recover from security threats while ensuring regulatory compliance.

Its offerings include data access governance (DAG), identity and access management (IAM), privileged access management (PAM) as well as active directory security and ransomware protection.

“Netwrix has continually demonstrated its ability to innovate and identify software that best addresses the complex data security challenges facing enterprises today,” Jared Hendricks, senior managing director at Centerbridge, and Chris Litchford, managing director at Centerbridge, said in a statement. “We look forward to partnering with the Netwrix team and TA to promote innovation and further scale the company.”

Growing revenue, customer and employee satisfaction

TA Managing Directors Mike Libert and Harry Taylor said that since the firm’s initial investment in 2020, Netwrix has increased annual recurring revenue fivefold, driven by Netwrix’s transition to a fully subscription business model, investment in new offerings, and several strategic acquisitions.

“Given Netwrix’s established industry leadership, we believe there is a clear runway for further organic and inorganic growth in partnership with the Centerbridge team,” Libert and Taylor said in a statement.

“Netwrix has a history of delivering cutting-edge capabilities and excellent employee and customer satisfaction,” Dan Mayleben, executive chairman of Netwrix said in a statement. “We are grateful for the confidence Centerbridge and TA continue to have in the business.”

The company said that the transaction is expected to close in the third quarter of 2023. No financial terms were disclosed.

Jefferies LLC served as financial adviser to Netwrix and TA. DLA Piper and Goodwin Procter LLP provided legal counsel to TA. Moelis & Company served as financial adviser to Centerbridge and Kirkland & Ellis LLP provided legal counsel.

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