LogRhythm becomes the latest addition to the Thoma Bravo portfolio

Investment firm takes a majority stake in SIEM pioneer LogRhythm

Technology investment firm Thoma Bravo is to acquire a majority stake in security LogRhythm.

Based in Boulder, Colorado, USA, LogRhythm is a provider of security information management (SIEM) software designed to intercept and neutralise cyberthreats before they can do damage. Its AI-enhanced solutions feature user and entity behaviour analytics (UEBA), network traffic and behaviour analytics (NTBA) and security automation and orchestration (SAO).

The company was founded in 2003 by Chris Petersen and Phillip Villella to "address the unmet and growing need for a comprehensive log and event management solution."

Thoma Bravo's $20bn portfolio of tech investments include Datatel, Digital Insight, Entrust, SonicWall, SailPoint, Hyland Software, Deltek, Blue Coat Systems, Bomgar, Barracuda Networks, Compuware and SolarWinds. It was also in the running to buy BMC but was pipped to the post by KKR this week.

"LogRhythm believes it has found an ideal partner in Thoma Bravo," said Andy Grolnick, chairman, president and CEO of LogRhythm in a press statement.

"As we seek to take LogRhythm to the next level and extend our position as the market's preeminent NextGen SIEM vendor, we feel Thoma Bravo's cybersecurity domain expertise and track record of helping companies drive growth and innovation will make this a powerful and productive relationship. We believe this is an exciting strategic step forward for our company."

Managing partner Seth Boro added: "Thoma Bravo has long admired the work of Andy, Chris, Phil Villella and the entire LogRhythm team. The company's impressive track record of growth shows the continued demand for LogRhythm's differentiated offerings."

For LogRhythm Chris Petersen, CTO, chief product officer and co-founder said: "We look forward to working closely with Thoma Bravo to continue our customer-centric approach to innovation, enabling enterprises across the globe to protect themselves from damaging cyberthreats."

The deal is expected to be signed of in the third quarter of this year, subject to regulatory approvals. Financial terms of the transaction have not been disclosed.