Barracuda Networks has hired Morgan Stanley to pursue a potential sale of the security and storage company, according to a report. The alleged move comes only about four months after Barracuda acquired Intronis, which offers cloud backup services to MSPs.
Updated February 2, 9:15 a.m. ET: Barracuda for Sale? How Intronis MSPs Should React.
According to Bloomberg, Barracuda hired Morgan Stanley to seek out potential buyers. However, Bloomberg added:
"No buyers have emerged, and a deal isn’t imminent and may not happen at all, the people said. Barracuda dropped 35 percent on Jan. 8 after reporting disappointing third-quarter earnings. The company’s struggles may further impede a deal, said the people, as valuation expectations between potential acquirers and Barracuda have widened."
Also today, Barracuda confirmed plans to shut down its Copy and CudaDrive services. Barracuda's market capitalization is only about $625 million, according to Yahoo Finance. Several security stocks have declined dramatically in recent months amid concerns about overheated valuations and the strength of the U.S. dollar. Among those with depressed share prices: FireEye, the fast-growing provider of automated threat forensics.
Barracuda, meanwhile, intends to build stronger bridges between the VAR and MSP markets, connecting the dots between its core security products and the Intronis-focused cloud backup business. Intronis has retained the vast majority of its leadership team since Barracuda acquired the company in September.