BlueCat Networks has been sold for almost $400 million to US private equity firm Madison Dearborn Partners in the latest in a string of foreign takeovers in the sector, according to the Globe and Mail’s Sean Silcoff.
According to the report, cofounding brothers Michael Hyatt and Richard Hyatt will pocket the majority of the proceeds and retain a minority stake. Michael Hyatt will also remain a BlueCat director.
“This is an incredibly exciting time for BlueCat,” said Michael Harris, CEO of BlueCat. “With the added resources and expertise of MDP, BlueCat will be strongly positioned to accelerate our growth.”
BlueCat’s server technology is used by about 1,000 large corporate and government customers to connect their users and devices securely to Internet-based applications and services.
“BlueCat is a leader in a high-growth, in-demand sector of the global enterprise IT industry, and we look forward to partnering with Michael Harris and his talented management team to build upon the company’s momentum,” said Doug Grissom, a Managing Director at MDP and head of the firm’s Business and Government Services team. “We look forward to utilizing our expertise in high-growth technology companies to help BlueCat realize its growth prospects, while continuing to deliver critical solutions to customers.”