KKR Increases Investment in NetSPI with New Funding of $410M

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Partners play a vital role in NetSPI’s growth and expansion plans for the future.

Global investment firm KKR is providing $410 million in new funding to NetSPI, a provider of enterprise penetration testing and attack surface management.

KKR increases its investment in NetSPI with the funding. He originally invested in NetSPI in May 2021.

The financing recapitalizes NetSPI’s first institutional investor, Sunstone Partners. The transaction will close by the end of 2022, subject to customary regulatory approvals.

Lauren Gimmillaro is NetSPI’s Vice President of Business Development and Strategic Alliances.

NetSPI’s Lauren Gimmillaro

“KKR’s investment will be used to continue innovating and expanding our technology portfolio, expanding globally and increasing talent at NetSPI,” she said. “We launched the NetSPI Partner Program earlier this year. This funding will therefore help us grow our channel team, ranging from channel development managers to those who can train partners in enablement, and much more. With this investment, we can double the growth and expansion. And an important part of this plan is the channel.

Enterprises use NetSPI’s suite of offensive security solutions to discover critical security vulnerabilities, minimize risk, and reduce the likelihood of a security incident. The suite includes attack surface management, penetration testing as a service (PTaaS), and breach and attack simulation.

Partners play a vital role in growth and expansion

“Partners play a vital role in NetSPI’s growth and expansion plans for the future,” Gimmillaro said. “[They] are essential to help us improve the security posture of organizations. And as we continue to grow our partner program, we’ll be looking at a variety of different partner options, including MSPs/MSSPs, VARs, vCISOs and more. By this time next year, we want to double our distribution operations. And finding strategic partners is essential to achieve this.

This funding will ultimately allow NetSPI to double its key competitive advantage, she said. This is its platform-driven, human-delivered penetration testing methodology.

“We combine the human ingenuity of 400 global offensive security professionals with our innovative technology platforms – a unique combination that ensures quality, consistency, transparency, accountability and efficiency in all NetSPI assessments,” Gimmillaro said. “This will continue to be our key differentiator, especially as we expand through organic growth and mergers and acquisitions deals. As an extension of our team, our partners enjoy the same competitive advantage. By speaking with customers, they understand how valuable the human element is to offensive security today and how seamlessly NetSPI can operate within their organization.

Next year an “exciting time” for partners

Next year will be an “exciting time” for NetSPI channel partners, Gimmillaro said.

“On the one hand, we are strategically growing our distribution team as well as our bank of trusted partners,” she said. “We are also actively engaging technology partners, security companies, and third-party software vendors to help create meaningful integrations with NetSPI to improve the overall customer experience.”

NetSPI has consistently exceeded growth expectations. Over the past five years, the company has quintupled its revenue, outpacing 50% organic growth in 2021 and 61% growth in 2022 year-to-date.

Ben Pederson is Director of KKR’s Technology Growth Team.

“NetSPI continues its trajectory of strong and accelerated organic growth and profitability,” he said. “And we are excited about the opportunity to build on this momentum with new investments in technology, people, geographic expansion and strategic acquisitions. Penetration testing is an increasingly important and strategic aspect of any organization’s security posture. And we believe NetSPI is a category-defining player in the space with its industry-leading technology and PTaaS delivery model. We look forward to supporting NetSPI’s continued growth globally.

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