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Sources: KKR Acquires Optiv for $1.9 Billion

After months of rumors, Optiv Security Inc. apparently has been sold, according to multiple sources. Indeed, Blackstone Group allegedly has sold Optiv to KKR for roughly $1.8 billion to $1.9 billion — or perhaps as much as 11 times to 13 times various EBITDA (earnings before interest, taxes, depreciation and amortization) estimates, according to multiple sources close to the deal.

Updated December 6, 2016, 8:45 a.m. ET: KKR has now publicly confirmed the Optiv Security acquisition.

Optiv, a cyber security solutions provider, was formed through the merger of Accuvant and FishNet Security in 2015.

According to a Nov. 18 filing with the SEC, Optiv has:

  • more than 1,700 employees — including over 1,300 cyber security experts who plan, build and run cyber security programs for customer;
  • 400 partnerships with established and emerging security software providers and hardware manufacturers;
  • a customer base that has included 71 of the Fortune 100 and 604 of the Fortune 1000 over the past three years;
  • more than 7,500 customers in 76 countries over the past three years.
  • more than $972.6 million of revenue on a pro forma basis in 2015; and
  • adjusted EBITDA for the year ended December 31, 2015 and the nine months ended September 30, 2016 of $97.5 million and $61.2 million, respectively; and
  • covenant Adjusted EBITDA of $122.6 million and $117.4 million for the 12 months ended September 30, 2016 and December 31, 2015, respectively.

Sources close to the deal peg the overall valuation at roughly 11 to 13 times EBITDA, though ChannelE2E has not seen overall 2016 revenue or EBITDA estimates for Optiv.

Blackstone’s IPO or Exit Plans for Optiv

Blacksone has been exploring a potential Optiv IPO or a company sale since at least April 2016, according to Bloomberg. The S1 filing in November 2016 furthered those rumors.

ChannelE2E has reached out to Optiv and KKR for comment about the IT solutions provider’s alleged sale. As of this writing, neither Optiv nor KKR had replied to the request for comment. Blackstone could not be reached for potential comment. Stay tuned for additional updates to this article.

Track all VAR, MSP and CSP mergers and acquisitions by visiting the ChannelE2E Milestones section each day.

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