Barracuda Networks CEO pledges to increase channel investment after KKR deal

Barracuda Networks CEO Hatem Naguib promises to increase channel investment following today’s announcement that private equity giant KKR plans to acquire messaging security provider.

Naguib, Barracuda’s CEO, based in Campbell, Calif., since last August and the company’s former chief operating officer, said the immediate plan was to aggressively increase Barracuda sales under KKR, a powerhouse of private equity firm that has aggressively entered the cybersecurity space in recent years. .

“My goal is to take this business to double-digit (revenue) growth and I would like it to become a billion-dollar business. When that happens, who knows? As soon as possible,” said Naguib, whose company revealed that its current revenue exceeds $500 million.

[RELATED STORY: Barracuda To Boost MSP Protection With Planned Acquisition Of Skout Cybersecurity]

In an interview with CRN, Naguib said channel partners, including MSPs, will continue to be an important part of Barracuda’s growth strategy under KKR, which is buying Barracuda from another private equity firm, Thoma. Well done, in a transaction that should close by the end. of the year.

“We are investing and have invested in our channel before this acquisition and will continue to make this investment and increase this investment (under KKR),” he said. “We view this transaction as part of investing in growth from a sales and channel perspective, things that we will be doing to engage more actively with our MSPs and channel partners. for them. ”

Barracuda, whose partner program received a 5-star award in the 2022 CRN Partner Program Guide, is focused on serving small and medium-sized businesses with a wide range of cybersecurity offerings, including e- email, application security, network security and data protection. It also has a partnership program for MSPs.

Barracuda, founded in 2003, has about 200,000 customers worldwide, according to a company press release.

Late last year, CRN reported that Barracuda’s annual recurring revenue (ARR) for MSP security solutions was up 37% year over year, as of September 30, 2021.

“We’ve been very, very focused on having our distribution partners succeed in delivering our products to our customers,” Naguib said. “We have a very robust ecosystem and capabilities with partners we work with around the world, including MSPs.”

Naguib promised that Barracuda would remain the “same big business” for channel partners after its formal acquisition by KKR.

KKR and Thoma Bravo did not disclose Barracuda’s sale price, but a Reuters report pegged the deal’s value at $4 billion. Naguib declined to comment on the Reuters report.

While saying he plans to rely heavily on the channel for future sales growth, Naguib said Barracuda also plans to add products and new revenue streams through continued acquisitions. Over the past 18 months, Barracuda has purchased, for example, SKOUT Cybersecurity, a cyber-as-a-service software provider, and Fyde, a Zero Trust Network Access (ZTNA) innovator.

Following KKR’s planned takeover of Barracuda later this year, Barracuda will implement KKR’s extensive employee share ownership program, which makes employees co-owners of companies acquired by KKR. The private equity firm has implemented similar models in more than 25 companies it has acquired since 2011, according to the statement.

Naguib praised KKR’s employee share ownership program, saying allowing employees to “share in the creation of wealth” is a good way to achieve positive results for the company.

“We believe this drives the right levels of value for a company to engage with customers,” he said. “I think the channel will see that. I think our customers will see it. It’s a big plus in every way.

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