US private equity and venture capital firm Insight Venture Partners is set to acquire a majority holding in Israeli IT security firm Checkmarx at a company value of $100 million, according to reports in the Israeli media. Checkmarx declined to comment on the reports.
Checkmarx was founded in 2006 by Maty Siman at XT Investments (formerly Ofer Hi-Tech) Naiot Venture Accelerator. The company has raised $14.5 million to date including $8 million in 2013 from XT investments, strategic investor Salesforce.com Inc. (NYSE: CRM), and others….
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Insight Venture Partners has invested in global companies such as Twitter, Chegg, Tumblr, Flipboard, Zumba, Quest Software. Hootsuite and Hotel Urbano.
Checkmarx flagship product is its automated static code analysis – scanning for security deficiencies in source code early in the software development lifecycle where it is most cost effective to apply fixes.
With offices in both Israel and the US, Checkmarx has grown employee headcount to over 150 in the last 12 months, and is experiencing revenue growth greater than 100% in 2015. The company has an industry-leading customer retention rate and currently serves over 700 customers worldwide including Salesforce.com, SAP and the US Army.
“Checkmarx was founded with the goal of becoming the world leader in the application security market to provide businesses a better way to protect their data, ” said Emmanuel Benzaquen, CEO of Checkmarx. “Our partnership with Insight Venture Partners will allow us to continue our pursuit of that goal as we expand our global sales operations and widen the scope of our application security platform.”
“Security has become one of the greatest concerns for companies, and Checkmarx has a proven track record of true leadership in application security.” said Richard Wells, managing director at Insight Venture Partners. “We are pleased to add Checkmarx to our portfolio of companies as they continue to provide businesses and organizations with innovative solutions to keep their data secure against ever-increasing security threats.”
Mooreland Partners LLC served as the Company’s exclusive financial advisor in the transaction and HFN served as the Company’s legal counsel. Willkie Farr & Gallagher LLP acted a legal adviser to Insight Venture Partners.
