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The Wire

Jan. 18, 2022

OceanSound-backed Netrix marks 4th cybersecurity deal; Warburg Pincus move in secondaries; Microsoft buys Activision Blizzard

Good morning, Hubsters. MK Flynn here with the Wire.

 

In corporate dealmaking news, Microsoft just announced it is buying videogame developer Activision Blizzard (maker of Warcraft and Call of Duty, among many others) for $68.7 billion, marking the software giant’s biggest acquisition by a long shot. Until now, that record was held by LinkedIn, which Microsoft bought for $26 billion in 2016.

 

Here’s a look at what’s going on in private capital.

 

Supply chain and ransomware cyberattacks are expected to rise in 2022, fueling ongoing private equity interest in cybersecurity companies. This morning, OceanSound Partners portfolio company Netrix, a provider of managed and professional IT and cybersecurity services, announced it has acquired BTB Security, a cybersecurity and digital forensics provider. The deal marks the fourth acquisition since OceanSound Partners acquired Netrix in August 2020.

 

Secondaries. Warburg Pincus, no stranger to secondaries transactions, is running a process for more time and capital with its portfolio company Duravant, sources told Buyouts. The deal comes after Warburg sold a stake in the packaging equipment services provider to Carlyle in October.

 

More Secondaries. Altamar CAM Partners has held final close on its fourth secondaries fund as it looks to rapidly grow its assets under management.

 

Gen Z VCs. The number of people born between 1997 and 2012 entering the workforce will triple over the next decade. Venture capital firms are hiring these entrepreneurial digital natives known for their activism and outspokenness, reports Venture Capital Journal.

 

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at cwitkowsky@buyoutsinsider.com. Go here for all the rules and regs!  

 

In case you missed it. Check out PE Hub’s Q&A series with high-profile private equity pros, including: Pam Hendrickson, vice chairman of The Riverside Company, who was recently elected chair of the American Investment Council; Trevor Clark, founder and managing partner of Twin Brook Capital Partners; David Grain, founder and CEO of Grain Management; and Beatrice Mitchell, co-founder and managing director of Sperry, Mitchell & Co.

 

Until tomorrow, MK

 

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

"Microsoft agreed to buy Activision Blizzard in an all-cash deal valued at $68.7 billion, using its largest acquisition by far to grab a videogame heavyweight that has been roiled by claims of workplace misconduct." (Wall Street Journal)

 

"Jefferies Financial Group Inc is abandoning an effort to raise a $1 billion fund to buy stakes in private equity fund managers, giving up on a niche and lucrative corner of asset management, people familiar with the matter said." (Reuters)

 

A recent "study found that after a buyout, as higher-paid (often male) workers departed and cheaper ones were hired, the average pay gap between men and women fell by 6.5 per cent. The wage difference between young and older workers shrank by an even more impressive 18 per cent." (Financial Times)