Member Article

Another successful exit as YFM Equity Partners sells Deep Secure Limited realising a 6.5x return

June 2021: YFM Equity Partners-advised funds have sold their shareholding in Deep Secure Limited to Forcepoint Federal LLC, a global cyber security solutions business specialising in serving government and critical infrastructure clients for an undisclosed sum. The transaction is subject to regulatory review and customary closing conditions and is expected to close in or before August 2021.

Deep Secure Limited is a leading provider of cyber security defence solutions, pioneering the Threat Removal approach to deliver assured malware-free information exchange for its customers. Deep Secure’s innovative approach does not rely on being able to detect threats but instead transforms content to render it completely safe.

YFM has been supporting the transformational growth of UK SMEs since 1982. Deep Secure was backed by YFM Funds, including British Smaller Companies VCT plc and British Smaller Companies VCT2 plc. The exit will deliver a money multiple return of 6.5x for the investors.

Dan Turner, CEO of Deep Secure Limited, commented: “Deep Secure has scaled strongly with YFM’s support, developing an exciting and ground-breaking approach to cyber security. We have worked very closely with YFM, who have been a hugely supportive partner, to invest in our technology as well as the sales and operational capabilities of the business to execute our successful strategy.”

Commenting on the realisation, Eamon Nolan, partner at YFM, stated: “We backed an ambitious management team at Deep Secure that has delivered on its strategy to develop a market-leading approach to cyber security. Deep Secure has developed exciting technology in the increasingly vital area of cyber defence and has grown revenues and profits significantly. We are delighted to have delivered strong returns for our investors with this exit. Forcepoint is the ideal strategic acquirer of Deep Secure to enable both businesses to continue supporting the UK Prosperity agenda, to continue to develop the product range their customers need, and to address the ever increasing need for security and protection to a wider audience.”

YFM and the management team were advised by Ernst & Young Corporate Finance (Markus Salolainen and Richard Jacklin) and Gateley Legal (Rebecca Grisewood, Kate Richards, Victoria Brown).

This was posted in Bdaily's Members' News section by Emma Kilmurray .