Clearlake and Francisco Partners Finalize Black Duck Acquisition
Clearlake and Francisco Partners Complete Acquisition of Black Duck Software
In a significant move in the software security industry, Clearlake Capital Group and Francisco Partners have successfully finalized their acquisition of Black Duck Software, Inc., formerly known as the Synopsys Software Integrity Group. This newly independent company is focused on application security, reflecting a broader trend towards enhancing software integrity in various enterprises.
Value of the Transaction
This acquisition, originally announced on May 6, is estimated to be valued at up to $2.1 billion. This figure includes a cash component of up to $475 million that is contingent on Clearlake and Francisco achieving a specific rate of return through future liquidity events. Such strategic financial planning showcases the partners' belief in Black Duck's potential growth.
Introducing Black Duck's New Vision
Black Duck Software is led by Jason Schmitt, who has been driving innovation since joining Synopsys in 2020 as the general manager of its Software Integrity Group. As CEO of Black Duck, Schmitt is focused on enhancing the company's mission: to empower organizations to build trust in their software and embrace emerging technologies such as AI. The team emphasizes application security, which is critical for businesses trying to protect themselves from rapid cybersecurity threats. This support allows developers to concentrate on creating innovative solutions without compromising security.
Leadership and Strategic Goals
The leadership at Black Duck is also expanding, with the appointment of Joy Meier as Chief Human Resources Officer and General Counsel. The continuity in leadership ensures that the expertise and capabilities built during the time under Synopsys will persist as Black Duck aims to serve its customers effectively.
Commitment to Application Security
At the heart of Black Duck's offerings is a comprehensive suite of application security solutions. This includes industry-recognized products that have positioned Black Duck as a leader in the market. At this new stage, Black Duck is committed to enhancing its service offerings, ensuring that both existing and future clients receive top-notch security technologies.
Quote from Leadership
“We are excited to continue our partnership with the Black Duck management team as it transitions into a standalone entity,” said Brian Decker and Evan Daar from Francisco Partners. This transition marks a pivotal moment in Black Duck's strategy to strengthen its position as a leading application security testing provider. They indicate their eagerness to bring additional resources and expertise to sustain continuous acceleration in growth.
Black Duck’s Comprehensive Portfolio
As a recognized market leader in the realm of application security, Black Duck presents a diverse portfolio of products designed to meet a range of customer needs. These products have been awarded accolades such as being recognized in the Gartner Magic Quadrant for Application Security Testing for seven consecutive years, emphasizing their industry leadership.
Trusted Solutions for Enterprises
Included in Black Duck's celebrated offerings are the Polaris SaaS Platform, Coverity Static Analysis, Black Duck Software Composition Analysis, WhiteHat Continuous Dynamic Analysis, Seeker Interactive Analysis, and Defensics Protocol Fuzzing. Together, these solutions enable enterprise-scale software development teams to navigate the complexities of modern cybersecurity.
Conclusion: A Strategic Future Ahead
As Black Duck transitions from Synopsys to an independent entity bolstered by the resources and vision of Clearlake and Francisco Partners, the company is poised to pursue new growth avenues. “We are proud of what we have accomplished, and I am optimistic about our future,” said Jason Schmitt. With an emphasis on innovation and excellence in application security solutions, Black Duck is ready to forge its path in today’s tech landscape, ensuring organizations can trust in the security of their software.
Frequently Asked Questions
What is the value of the acquisition of Black Duck Software?
The acquisition is valued at up to $2.1 billion, including a contingent cash payment of up to $475 million.
Who is leading Black Duck Software?
Jason Schmitt is continuing as the CEO of Black Duck Software, ensuring stable leadership through this transition.
What makes Black Duck a leader in application security?
Black Duck has been recognized as a leader in the Gartner Magic Quadrant for Application Security Testing for seven consecutive years.
What types of products does Black Duck offer?
Black Duck provides a comprehensive suite, including software composition analysis, static and dynamic analysis tools, and security testing services.
What is the main goal of Black Duck as an independent company?
Black Duck aims to enhance application security for organizations, allowing them to innovate and integrate security into their development processes seamlessly.
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