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Veracode Software gobbled by private equity house Thoma Bravo for $950m

Home of McAfee and SonicWall slurps app security testing biz from Broadcom

Thoma Bravo – private equity owner of McAfee and Barracuda Networks – has slurped cloudy application security testing biz Veracode Software, a division of Broadcom, for $950m in cash.

Veracode was only bought by CA Technologies in March last year, but clearly doesn't feature in the future plans of Broadcom – CA's new parent. It sells a software-as-a-service platform and related wares for developers to ID and fix security defects during the dev lifecycle.

"Software security is one of the most consequential issues facing companies as they look to compete in the digital economy," said Sam King, currently senior veep and GM of Veracode, but who will be made CEO of the biz when the transaction is concluded.

Thoma Bravo also owns or has stakes in Centrify, Compare Corp, Koufax, LogRhythm, Riverbed and SolarWinds, Blue Coat Systems and SonicWall.

Around 2,000 firms – handily rounded up – use VeraCode to test the security of their applications, VeraCode claimed, including a third of the Fortune 100 and 20+ of Forbes Most Valuable brands.

Veracode, founded in 2006 by Chris Wysopal and Christien Rioux, was sold to CA for $614m in March 2017.

In one of the strangest buys we've seen, CA was snaffled by Broadcom for $18.9bn. The rationale, according to Broadcom CEO Hock Tan, was that he wanted to create a "leading infrastructure company" and CA, with its "sizeable" base of mainframe and enterprise software punters, was another step in that ambition. ®

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