Audax Private Equity is reportedly evaluating the sale of cybersecurity software company BlueCat Networks, with potential proceeds anticipated to surpass $1.5 billion, according to people familiar with the matter.
Audax, which acquired BlueCat in 2022, has engaged JPMorgan to oversee the sale process, which is currently in progress. Sources noted that representatives for Audax and BlueCat did not respond to requests for comment, while a JPMorgan spokesperson declined to comment.
Based in Toronto, BlueCat provides software solutions for network control, automation, and security. The company serves enterprise clients and maintains recurring revenue streams, generating over $100 million annually. According to sources, the business could be valued between $1.5 billion and $2 billion in a sale.
The move comes amid heightened interest in cybersecurity assets from private equity firms, drawn to companies with steady cash flow and long-term growth prospects driven by rising cyber threats and regulatory demands. BlueCat’s focus on enterprise network management makes it an attractive opportunity for both strategic and financial buyers.
“Security software has remained a ripe sector for M&A as private equity firms target cash-generative businesses with returning customers and long-term growth tied to cyber risk,” a source said.
