Carlyle, an American private equity fund group, is planning to sell its 80% stake in Cyberoam Technologies, an unlisted network security solutions provider, to Sophos Group, a UK based company, for a whopping Rs. 500 crore.
The Carlyle Growth Fund in 2007 invested more than $10.3 million in Elitecore Technologies, an Ahmedabad-based parent company of Cyberoam and an additional $3.1 million in subsequent years, the Economic Times reported. Cyberoam Technologies has its offices in the USA, Middle East and India, with its R&D and global support management centre located in India and has around 450 employees.
Our source revealed that the deal closed for somewhere near the $65-$70 million mark thereby giving Carlyle a six-fold return from the sellout.
Hemal Patel, who owns Cyberoam with a 20% stake in the company, will continue as the owner while Sophos Group, popular for its anti-virus products, will help the company to expand across global markets, reported a person with direct knowledge of the matter. Cyberoam has denied to comment on the matter.
Prior to Sophos buyout, there were reports that a Japanese security vendor was keen on buying Cyberoam and its operations; however, subsequent audits from the buyer yielded unfavourable results because of which the deal was scrapped.
