The deal involves an all-cash transaction of about $4.6 billion, according to a statement announcing the deal. The transaction will close in the first half of 2023, the company said.
KnowBe4 has worked with Aurora, Ill., and other governments to increase Internet security via courses and other measures.
“This acquisition by Vista represents the next phase of our journey,” said Stu Sjouwerman, founder, chairman and CEO of KnowBe4, in that statement. “KnowBe4 has a strong record of performance, as evidenced by our market-leading platform and global customer base. Under Vista’s ownership, we will have access to additional resources and support, which will help us achieve our goals and deliver enhanced value to our customers.”
The company provides such services as security awareness training and a simulated phishing platform to more than 52,000 organizations across the world. The deal comes amid increasing focus on cybersecurity as more local and state governments become ever more digital and as public officials prepare for elections this fall.
Additionally, the deal happens as gov tech in general absorbs more investment from private equity firms, with the industry seen as relatively safe and low-risk.
As for Vista Equity, it manages at least $94 billion in assets and has a portfolio of 85 companies, according to a recent Yahoo Finance interview with Vista CEO Robert Smith.
“Enterprise software still is viewed as the most productive tool introduced in the business economy in the last 50 years, like it will be for the next 50,” he said during that interview. “So in an environment where there’s wage inflation, a lack of developer talent, challenges related to cyber attacks, companies are actually increasing in many cases their spending in enterprise software.”
