EQT weighs options for Open Systems including partial sale

The Sweden-based sponsor has asked Bank of America to prepare a sale process for Open Systems’ larger secure access service edge (SASE) network division with the expectation it will retain the response management and threat detection arm, three of the sources said.

While sale deliberations are at still at an early stage and mostly focused on selling the company’s network division, EQT could still explore a full sale of the Zurich-headquartered business, should it receive attractive proposals from suitors, two of the sources said.

EQT acquired Open Systems in 2017 for an undisclosed sum. Founded in 1990, the company helps enterprises, NGOs and other institutions to protect IT networks and business-critical applications. Open System is made up of its SASE business SASE+ and MDR+, a fully managed cybersecurity threat detection and response service, according to its website.

The company’s network division generated approximately EUR 30m (USD 32.1m) in FY22 EBITDA, one of the sources said, while the entire business booked EBITDA of roughly EUR 40m (USD 42.9m), another of the sources added.

Comparable businesses include Israeli-based Cato Networks, one of the sources said. Cato secured USD 200m of funding at a market valuation of USD 2.5bn in a round led by Lightspeed Venture Partners, as reported in October 2021. Open Systems operates in the same space as US peers Palo Alto Networks and Zscaler.

Open Systems acquired UK-based managed security service provider Tiberium in November.

Representatives for EQT and Bank of America declined to comment. Open Systems did not respond to requests for comment.

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