Capstone Advises StratoZen on its sale to ConnectWise

Capstone Headwaters, now Capstone Partners, a leading international investment banking firm, advised StratoZen, Inc., on its sale to ConnectWise, LLC, a portfolio company of Thoma Bravo, LLC. Strong and Hanni served as legal counsel to the Company on the transaction.

StratoZen, based in Salt Lake City, Utah, utilizes an industry leading SOAR (Security Orchestration, Automation and Response) technology platform to provide managed security services including (Co)Managed SIEM, SIEM-as-a-Service, SOC-as-a-Service, and Proactive Defense services to nearly 1,000 organizations on six continents, processing over 20 billion security events every day. StratoZen’s capabilities bolster ConnectWise’s united IT management platform for technology solution providers (TSPs).

Working with Capstone enabled us to achieve an optimal result in all facets of the transaction. In-depth industry knowledge, outstanding process execution, and skilled negotiating enabled us to complete a fantastic transaction with a highly strategic buyer. We are very excited about the potential for accelerated growth and success as part of ConnectWise.

Kevin PrinceCEO, StratoZen

Tom McConnell, a Managing Director on Capstone’s Aerospace, Defense, Government & Security (ADGS) team noted that, “Kevin and his team were great to work with. In leveraging automation to both improve client outcomes and efficiently scale the business, they provide an extraordinary case study for entrepreneurs in the fast-growing cyber security industry. StratoZen’s team, technology and loyal customer base will be highly accretive to ConnectWise. Congratulations to all involved.”

ADGS Managing Director David Brinkley, who co-led the transaction with McConnell, added, “In an extremely competitive environment, StratoZen relentlessly focused on enhancing their core competencies, transforming SOAR capabilities across a broad range of industries. It was a privilege representing the entire StratoZen team and we look forward to the acceleration of the combined business at ConnectWise.”

“StratoZen’s offerings are going to help bring the cybersecurity silos of chaos under control for TSPs around the world, and we’re thrilled to have Kevin and the entire team join the ConnectWise family,” said Jason Magee, CEO, ConnectWise. “We’re excited about what the future holds, and we appreciate Capstone’s assistance in making the deal come to fruition.”

StratoZen, Inc. bridges the gap between traditional in-house cybersecurity and legacy outsourced MSSP (managed security service provider) options. As a cloud-based platform, StratoZen makes cybersecurity more accessible, affordable and flexible by leveraging a SOAR platform which cross-correlates, analyzes and applies custom rules to data gathered from any network device. This engine eliminates false positives and provides truly actionable intelligence for SOC analysts and clients. StratoZen was named a Top 10 SIEM Solution Provider for 2020 by Enterprise Security Magazine, listed as one of the top 250 MSSPs by MSSPAlert, and receives high marks from Forrester Research.

ConnectWise is an IT software company that empowers Technology Solution Providers to achieve success in their As-a-Service business with intelligent software, expert services, an immersive IT community, and a vast ecosystem of integrations. The unmatched flexibility of the ConnectWise platform fuels profitable, long-term growth for our Partners. With an innovative, integrated, and security-centric platform, ConnectWise enables TSPs to drive business efficiency with business automation, IT documentation, and data management capabilities. And increase revenue using remote monitoring, security, and backup disaster recovery technologies. For more information, visit ConnectWise.

Thoma Bravo is a leading private equity firm with a 40+ year history, including over $70 billion in assets under management as of June 30, 2020, and a focus on investing in software and technology companies. They pioneered the buy-and-build investment strategy, and we first applied this strategy to the software and technology industries 20+ years ago. Since then, the firm has acquired more than 260 software and technology companies representing over $78 billion of value. Their investment philosophy is centered around working collaboratively with existing management teams to help drive operating results and innovation. They execute through a partnership-driven approach supported by a set of management principles, operating metrics and business processes. They support our companies by investing in growth initiatives and strategic acquisitions designed to drive long-term value.