Investcorp buys German cybersecurity firm for $180m

Bahrain based Investcorp acquired German cybersecurity company Avira for $180 million. Courtesy of Investcorp

Investcorp, the Bahrain-based asset manager that counts Mubadala Investment Company as its biggest shareholder, acquired German cybersecurity company Avira for $180 million (Dh661m).

Avira provides software for protection against viruses, malware, ransomware and other threats. Its customers include major manufacturers as well as consumers.

“Avira represents an attractive opportunity to invest in a cybersecurity business and marks our third investment in the DACH (Germany, Austria and Switzerland) tech sector in the last 18 months,” said Gilbert Kamieniecky, managing director and head of Investcorp’s technology private equity business.

“With our long history of working with cybersecurity, IoT and data-driven businesses, Investcorp is looking forward to supporting Avira’s targeted growth trajectory and expansion plans.”

The acquisition by Investcorp represents the first institutional investment in Avira since it was founded in 1986 by Tjark Auerbach, according to a statement by Investcorp on Thursday.

“We are proud to be partnering with a firm that offers such a breadth of experience working with growing technology and software firms,” Travis Witteveen, chief executive of Avira said. “The investment confirms our business strategy and enables us to further accelerate our profitable growth in the consumer and OEM (Original Equipment Manufacturer) market segments."

Investcorp has raised four technology funds to date, with the latest being a $400m fund that closed in December 2018. Other investments made by the current fund include Ubisense’s SmartSpace enterprise and logistics software platform; human resources software provider Softgarden and a proprietar cloud computing company known as Calligo.

Since its inception in 1982, Investcorp has made over 195 private equity deals in the US, Europe, Asia and the Middle East and North Africa region, across a range of sectors including retail and consumer products, technology, business services and industrials. It also made over 800 commercial and residential real estate investments in the US and Europe, with a total transaction value of $61 billion.

Last month, it acquired the Coca-Cola Company’s Belgian headquarters for €88m (Dh362m), marking its first foray into the country and its first European sale and leaseback deal.