Audax Private Equity is exploring the sale of cybersecurity software provider BlueCat Networks, with potential proceeds expected to exceed $1.5bn, according to a report by Reuters citing unnamed people familiar with the matter.
Audax, which acquired BlueCat in 2022, has appointed JPMorgan to manage the sale process, which is currently underway. The Toronto-based firm provides software solutions for network control, automation, and security, serving enterprise customers with recurring revenue streams. BlueCat generates over $100m in annual revenue, and sources indicate the business could be valued between $1.5bn and $2bn.
The proposed sale comes amid strong private equity interest in cybersecurity assets, which are seen as resilient, cash-generative businesses with long-term growth potential driven by increasing cyber risk and regulatory requirements. BlueCat’s focus on enterprise network management positions it well in a sector attracting strategic and financial buyers alike.
According to Reuters, representatives for Audax, BlueCat, and JPMorgan all declined to comment.
