Private equity firm Audax Group seeks over $1.5 billion for BlueCat Networks, sources say

By Milana Vinn

Jan 27 (Reuters) - Private equity firm Audax Group is ​exploring a sale of cybersecurity provider ‌BlueCat Networks, which could fetch more than $1.5 ‌billion, according to people familiar with the matter.

The private equity firm, which bought BlueCat in 2022, has hired JPMorgan ⁠to run ‌the sale process, which is currently under way, several of ‍the sources said.

Representatives for Audax Group and BlueCat did not respond to requests for ​comment, while a spokesperson for JPMorgan declined ‌to comment.

Toronto, Canada-based BlueCat provides software for network control, automation and security.

The company generates more than $100 million in annual revenue and could be valued between $1.5 ⁠billion and $2 billion ​in the sale, the ​people said.

Security software has remained a ripe sector for M&A as ‍private equity ⁠firms target cash-generative businesses with returning customers and long-term growth tied ⁠to cyber risk.

(Reporting by Milana Vinn in ‌New York; Editing by Dawn Kopecki ‌and Edmund Klamann)