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Warburg Pincus-backed Cybersecurity Firm eSentire Explores Potential Sale

In a recent development, eSentire, a prominent cybersecurity company, is reportedly exploring strategic options, including a possible sale.


The company, backed by investment giants such as Warburg Pincus, Caisse de dépôt et placement du Québec (CDPQ), and Georgian, might be valued at around $1 billion, inclusive of debt.


The Waterloo, Ontario-based eSentire has engaged with the investment bank Evercore to navigate the sale process. This move could potentially draw interest from various private equity firms, although sources who wish to remain anonymous have indicated that a final deal is not certain.


The company's stakeholders are aiming for a valuation that surpasses 7 times its annual recurring revenue, which is currently about $150 million. However, there are no guarantees that a sale will materialize as planned.


Founded in 2001, eSentire specializes in artificial intelligence-powered cybersecurity tools that assist businesses in preempting and mitigating security threats. The firm boasts a client base of more than 2,000 organizations spread across over 80 countries and multiple industries.


Warburg Pincus first invested in eSentire in 2017, followed by CDPQ and Georgian, who acquired a significant stake in the company from Warburg Pincus in 2022.


The cybersecurity sector has seen active deal-making, driven by increased expenditures on AI-based security software by major corporations.


This trend includes significant moves by other firms in the industry, highlighting the ongoing dynamism and investment interest in cybersecurity solutions.


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