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Secure Software Development: Private Equity Firm Acquires Checkmarx

Private equity firm Hellman & Friedman is acquiring Checkmarx from Insight Partners at a $1.15 billion valuation. Checkmarx specializes in tools that help developers write software in a more secure fashion. Insight will maintain a minority stake in the software firm.

This M&A deal 154 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.

Founded in 2006, Checkmarx has more than 700 employees and more than 1,400 customers in 70 countries. Insight Partners invested roughly $84 million in Checkmarx in 2015, though the overall company valuation at the time was not revealed.

Checkmarx's software helps developers detect and understand bugs, flaws, and compliance issues. Its research arm has helped locate and report bugs in smart appliances and smartwatches. Customers increasingly leverage the software to find security bugs as well.

PE Firm Acquires Checkmarx: Reactions

Emmanuel Benzaquen, CEO, Checkmarx
Emmanuel Benzaquen, CEO, Checkmarx

Emmanuel Benzaquen, CEO of Checkmarx, commented:

“This acquisition is a clear testament to Checkmarx’s inimitable global team who have ensured our leadership position in software security, as well as to the significant role our technology plays in the broader cybersecurity industry. With more corporations leveraging software development to scale their businesses than ever before, executives are acutely aware of the increased risks caused by software exposure. More than 40 of the Fortune 100 have turned to Checkmarx to mitigate risk, secure code, and embed security into every aspect of their software development. We are thrilled to partner with H&F in our journey that takes our ‘software equals security’ vision to the next level.”

Hellman & Friedman Partner Tarim Wasim added:

“We are thrilled to be joining forces with Emmanuel, Maty, and the entire Checkmarx team. As cybersecurity threats continue to intensify, we strongly believe that embedding security early in the software development lifecycle is critical. Only one company – Checkmarx – has the breadth of products, developer-centric DNA, and culture of relentless innovation to serve the entire software security market. We look forward to building on Checkmarx’s tremendous success to date and supporting the company’s rapid growth in the years ahead.”

Insight Partners Managing Director Richard Wells concluded:

“Checkmarx technology is mission-critical to any business that is developing or integrating software, and from even before we invested in the Company in 2015, we have been continuously impressed by the leadership to come out of this team of game-changers and innovators. Maty and Emmanuel are two of the cybersecurity industry’s top operators and we have been thrilled to have supported their stratospheric growth over the last five years. We will remain active supporters and vocal champions of the Checkmarx team.”

PE Background

Headquartered in New York City, Hellman & Friedman is a global private equity firm with a number of investments in high-quality growth businesses. Since it was founded in 1984, H&F has raised over $50 billion of committed capital and invested in more than 90 companies.

Insight Partners, meanwhile, recently made headlines after completing its buyout of Veeam Software, valuing the data protection software company at $5 billion. Insight also owns Kaseya, the IT management software company focused on MSPs and IT professionals.