Private equity firm acquires Herndon tech company

Thoma Bravo buys Exostar; transaction amount not disclosed

Published July 7, 2020 by Sydney Lake

Herndon-based tech company Exostar LLC announced Tuesday it has been acquired by Chicago-based private equity firm Thoma Bravo LLC. The acquisition was first announced in early June.

The transaction amount was not disclosed. 

Exostar is a cloud-based platform that allows companies to securely share information and operate with security compliance. The platform is used by more than 135,000 aerospace and defense organizations across 150 countries.

Thoma Bravo specializes in the software and technology-enabled services sector and will partner with Exostar’s management to expand the company’s cybersecurity offerings.

“The events of 2020 will likely forever change how businesses operate and collaborate, placing a premium on risk mitigation and trust to best protect intellectual property, personally identifiable information, and other forms of sensitive data that organizations must share internally and externally,” Exostar President and CEO Richard Addi said in a statement. “We believe the demand for our innovative products will continue to rise.”

Founded in 2000, Exostar was developed as a joint venture among BAE Systems plc, The Boeing Co., Lockheed Martin Corp., The Raytheon Co., Rolls-Royce Holdings plc and Merck & Co. Inc. Exostar raised $15 million in venture capital from Merck Global Health Innovation Fund in 2015. Its series of funds since its inception represent more than $45 billion in capital commitments.

“Working closely with Exostar management, Thoma Bravo can provide the operational and financial resources needed to help the company accelerate growth and further develop its suite of security solutions,” Thoma Bravo Principal Carl Press said in a statement. “Our expertise in enterprise software and cybersecurity, combined with Exostar’s experience in servicing organizations in complex industries, can also help the company target new customers across the aerospace and defense, life sciences and health care industries.”

Kirkland & Ellis served as legal adviser to Thoma Bravo. Exostar used AGC Partners as its financial adviser and Latham & Watkins LLP as its legal adviser in the transaction.

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