Original URL: http://www.theregister.co.uk/2011/11/29/clearswift/

Brit security biz Clearswift pockets £30m from sugar daddies

Email and web guardian bought by Lyceum

By John Leyden

Posted in Small Biz, 29th November 2011 12:43 GMT

Investment house Lyceum Capital has bought UK-based content security firm Clearswift. Financial terms of the deal, announced on Tuesday, were imprecise but a spokeswoman said that around £30m will be ploughed into the business.

Clearswift, which plays in the email and web gateway segment of the security software market, also offers data loss prevention products that compete against Symantec, Sophos and other big players in an enterprise-focused market.

The Brit biz wants to use the investment to expand into key vertical sectors (outside of its core heartland of government and defence) and expand its reach geographically while bolstering its technical capabilities. Targeted acquisitions down the road to meet this goal are a possibility.

In the meantime its new bosses will focus on the hard sell. A statement from Clearswift reads: "Lyceum and our management’s growth strategy will focus on capitalising on the opportunities arising from recent high profile cyber-security breaches, the increase in regulatory compliance and the recent introduction of significant fines in countries, such as the UK, for breaches of data protection legislation."

The firm employs 170 people, almost two thirds of whom are based in the UK. It maintains satellite operations in Germany, Spain, Japan, the US, Australia and the Netherlands. Clearswift’s customers include BAE Systems, An Post, Warwick District Council, T-Mobile and Australia Post. Sales are predominantly channel-based.

The Clearswift acquisition was financed by a group of investors including Amadeus Capital Partners, DFJ Esprit and Kennet.

The deal follows Lyceum's earlier investments in the technology sector this year including its £30m acquisition of managed IT services provider Adapt in September and a £50m investment into Access, a cloud-based accounting and ERP software and services business, back in March. ®