Investment Values Cybersecurity Company at Over $1B, Bregal Sagemount Exits Stake
- Insight Partners and Sixth Street Invest $456 million in cybersecurity company Kiteworks
- Kiteworks focuses on security systems for data, files, and documents transmitted or shared among users
- Company values at over $1 billion after the growth investment deal
- Bregal Sagemount sold its stake in Kiteworks
- Kiteworks profitable with annual recurring revenue expected to reach $160 million by year-end
- Cyberattacks costly and advanced, fueled by generative AI techniques
Technology investors Insight Partners and Sixth Street Partners have invested $456 million in cybersecurity company Kiteworks, betting on the increasing demand for data protection from businesses and government agencies. The growth investment values the company at over $1 billion, marking an exit for private-equity firm Bregal Sagemount. Kiteworks focuses on security systems for data, files, and documents transmitted or shared among users, helping customers handle large files securely and control access through private-content networks. The company is profitable and expects to increase annual recurring revenue from $115 million last year to about $160 million by the end of the year. Cyberattacks are becoming more advanced and costly due to generative artificial intelligence, leading to higher breach costs.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Kiteworks’ cybersecurity company receiving a $456 million investment from Technology investors Insight Partners and Sixth Street Partners. It also discusses the increasing demand for data protection, the company’s focus on security systems for data transmission and sharing, and the growing challenges organizations face in keeping their data secure. The article includes relevant details about Kiteworks’ customers and market trends, as well as quotes from industry experts. However, it lacks a clear conclusion or summary statement.
Noise Level: 8
Noise Justification: The article provides relevant information about a cybersecurity company receiving investment and its focus on data protection for businesses and government agencies. However, it contains some repetitive information and lacks in-depth analysis or actionable insights.
Public Companies: International Business Machines (IBM), U.S. Securities and Exchange Commission (), U.K. National Health Service ()
Private Companies: Kiteworks,Insight Partners,Sixth Street Partners,Bregal Sagemount
Key People: Jonathan Yaron (Chief Executive), Eoin Duane (Managing Director), Alex Katz (Managing Director), Peter Sobiloff (Managing Director)
Financial Relevance: Yes
Financial Markets Impacted: Technology investors Insight Partners and Sixth Street Partners investing $456 million in cybersecurity company Kiteworks, which could impact the cybersecurity sector’s stock prices and related companies.
Financial Rating Justification: The article discusses a significant investment of $456 million into a cybersecurity company, Kiteworks, by technology investors Insight Partners and Sixth Street Partners. This investment may have an impact on the cybersecurity sector’s stock prices and other related companies in the industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The focus of the article is on a cybersecurity company, Kiteworks, receiving a growth investment and its potential for growth due to increasing demand for data protection.
Deal Size: The deal size is $456 million.
Move Size: No market move size mentioned.
Sector: Technology
Direction: Up
Magnitude: Large
Affected Instruments: Stocks
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