YFM scores 6.5x on Deep Secure exit

The transaction is subject to regulatory review and customary closing conditions, and is expected to close by August 2021. The purchase price was not disclosed.

Deep Secure was backed by various YFM funds including British Smaller Companies VCT and British Smaller Companies VCT2. The exit will deliver a money multiple return of 6.5x for the investors, YFM said in a statement.

Forcepoint Federal is a global cybersecurity business specialising in serving government and critical infrastructure clients.

YFM backed the all-equity £3.5m management buy-in of Deep Secure in 2009, according to Unquote Data.

The exit closely follows the sale of a minority stake in Manchester-based cloud and contact centre communications business FourNet to Palatine Private Equity, which generated a return of 6x for YFM.

Company
Founded in 2010 and headquartered in Malvern, Deep Secure is a provider of cybersecurity systems. Its services cover malware protection, threat removal and ransomware prevention.

According to public filings, it posted a £6.6m turnover and EBITDA of £2.1m for the 2020 financial year.

People
YFM Equity Partners – Eamon Nolan (partner).

Advisers
Vendors – EY Corporate Finance, Markus Salolainen, Richard Jacklin (M&A); Gateley Legal, Rebecca Grisewood, Kate Richards, Victoria Brown (legal).

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• Topics
• Exits
• Technology
• UK / Ireland
• YFM Group
• Trade sale