M&A Deal Summary

Vector Capital and Francisco Partners Acquire WatchGuard

On August 17, 2006, private equity firms Vector Capital and Francisco Partners acquired information technology company WatchGuard for 151M USD

Acquisition Highlights
  • This is Vector Capital’s 1st and Francisco Partners’ 4th transaction in the Information Technology sector.
  • This is Vector Capital’s 11th and Francisco Partners’ 20th largest (disclosed) transaction.
  • This is Vector Capital’s 7th and Francisco Partners’ 19th transaction in the United States.
  • This is Vector Capital’s 1st and Francisco Partners’ 3rd transaction in Washington.
Investment Fate
  • WatchGuard was sold to a consortium of financial buyers in 2022.

M&A Deal Summary

Date 2006-08-17
Target WatchGuard
Sector Information Technology
Buyer(s) Vector Capital
Francisco Partners
Deal Type Going Private
Deal Value 151M USD
Advisor(s) Wells Fargo Securities (Financial)

Target

WatchGuard

Seattle, Washington, United States
WatchGuard provides network security. The company’s Firebox X family of upgradeable appliances delivers the performance, functionality and security strength to meet the needs of small and medium sized organizations. All WatchGuard products include a LiveSecurity Service subscription for vulnerability alerts, software updates, expert security instruction, as well as individualized and self-help customer care. WatchGuard was founded in 1996 and is based in Seattle, Washington.

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Buyer(S) 2

Buyer

Vector Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 4.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Vector Capital is a private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector targets both public and private company investments. Prospective businesses typically have strong customer bases, high gross margins, and at least $30 million in sales. Vector Capital was formed in 1997, after spinning out from Ziff Brothers Investments. The Firm is based in San Francisco, California.


DEAL STATS #
Overall 8 of 48
Sector (Information Technology) 1 of 9
Type (Going Private) 3 of 15
State (Washington) 1 of 3
Country (United States) 7 of 40
Year (2006) 1 of 2
Size (of disclosed) 11 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-31 ProcessClaims

Manhattan Beach, California, United States

ProcessClaims, Inc. is a provider of software connectivity and business process solutions designed to boost productivity, enhance customer service and deliver significant return on existing IT investments.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-15 Open Solutions

Glastonbury, Connecticut, United States

Open Solutions LLC is a provider of software and software-enabled outsourcing solutions to banks, thrifts and credit unions.

Buy $1.3B
Buyer

Francisco Partners

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 45.0B USD
Size Mega
Type Sector Focused
DESCRIPTION
Francisco Partners' headquarters in San Francisco, California.
Francisco Partners' headquarters in San Francisco, California.

Francisco Partners is a private equity firm focused exclusively on investments in technology and technology-enabled services. Specific areas of interest include semiconductors, capital equipment, electronics components, systems and manufacturing, IT services and business process outsourcing, communications, security and enterprise applications, and infrastructure software. Prospective investment situations include divisional buyouts, growth equity financings, acquisitions of private companies, sponsored mergers and acquisitions, and take-privates. Francisco Partners looks for opportunities where it can commit a minimum of $100 million per investment. Francisco Partners was formed in 1999 and is based in San Francisco, California.


DEAL STATS #
Overall 22 of 149
Sector (Information Technology) 4 of 26
Type (Going Private) 2 of 16
State (Washington) 3 of 6
Country (United States) 19 of 124
Year (2006) 5 of 6
Size (of disclosed) 20 of 29
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-26 Ex Libris Group

Jerusalem, Israel

Ex Libris is a provider of software solutions for libraries, academic institutions and information centers. The Company's products are used by libraries to acquire, manage, deliver, and allow their users to discover, both their physical and electronic resources.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-12 Metrologic Instruments

Blackwood, New Jersey, United States

Metrologic Instruments, Inc. is a supplier of choice for data capture and collection hardware and software. The company uses its expertise to design, manufacture and market sophisticated imaging and scanning solutions serving a variety of retail, commercial and industrial applications. Metrologic offers 1D and 2D bar code reading, optical character recognition and image lift capabilities and has been delivering innovative, quality products that are cost effective, reliable and supported by the highest level of personal service for nearly 40 years.

Buy $420M