June 25, 2022

Cambridge, Ont.-based cybersecurity firm eSentire, Inc. is the newest Canadian know-how firm to high a US$1-billion valuation after majority shareholder Warburg Pincus LLC offered a few of its stake to a pair of Canadian traders.

The Caisse de dépôt et placement du Québec and current eSentire shareholder Georgian, the Toronto personal capital big, have purchased a US$325-million stake within the firm, with most of that going to purchase shares owned by Warburg in addition to early traders.

The deal will see Warburg’s possession stake in eSentire shrink from roughly three-quarters to only over half, whereas Georgian and the Caisse, one among Canada’s largest pension fund managers, will collectively personal 35 per cent. Greater than US$100-million of the funding goes to eSentire’s treasury within the deal, which values the corporate at US$1.1-billion previous to the receipt of funds.

The existence of the deal was first reported by Bloomberg, and additional particulars have been confirmed Thursday by two sources accustomed to the matter. The Globe and Mail is just not disclosing the identities of the sources as they don’t seem to be approved to debate the matter.

eSentire is likely one of the breakout success tales of the post-BlackBerry Waterloo, Ont., area. It generates greater than US$80-million in annual income and has been rising by about 35 per cent per yr. The corporate serves greater than 1,000 enterprise clients in 70-plus nations.

The 21-year-old firm, with about 520 workers, supplies know-how that helps company safety operations groups shield important purposes from cyber assaults by utilizing a mixture of algorithms and human evaluation to search out and mitigate safety breaches earlier than they disrupt operations.

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Certainly one of eSentire’s high opponents is Arctic Wolf Networks, which relies in Eden Prairie, Minn., however was conceived throughout a dialog between the founders years in the past in Kitchener, Ont., Arctic Wolf CEO Brian NeSmith has stated. The corporate is just not solely a rival for eSentire within the market but in addition for expertise, as half its workers, together with its entire analysis and improvement operation, is within the Kitchener-Waterloo area.

ESentire additionally competes with Mandiant Inc., previously often known as FireEye. Bloomberg has reported Microsoft is in talks to purchase that Virginia firm.

Georgian purchased into eSentire in 2014 and invested once more in 2016 as a part of a US$19.5-million enterprise capital deal led by Edison Companions and backed by Cisco Investments, Northleaf Ventures Catalyst Fund and Data Enterprise Companions. A yr later, Warburg purchased into eSentire for an undisclosed quantity. Warburg, Edison and Georgian all participated in a US$47-million funding spherical by eSentire in 2019.

eSentire is led by chief government officer Kerry Bailey, who joined the corporate 4 years in the past after serving as senior vice-president and normal supervisor of cloud at Hewlett Packard Enterprise. He changed J. Paul Haynes, who’s now president and chief working officer.

Spokespeople for eSentire and Georgian declined to remark.

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