American Equity Fund Helman Friedman aquires Israeli Checkmarx in a cash deal for $ 1.15 billion

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by Ifi Reporter Category:Hitech Mar 15, 2020

American Equity Fund Helman Friedman signed a purchase deal with Israeli cyber company Checkmarx this morning. The company was fully sold in a cash deal for $ 1.15 billion. However, as part of the Checkmarkx shareholder's deal, including Insight - they have exchanged some of their proceeds in acquiring shares, as is customary in private equity deals. The company was sold through a quick auction process that began on Thursday, during which a number of huge funds were bidding on the deal. And it closed in three days.
This is Insight's first sale in Israel, and it gives it a significant return on money. Insight acquired 70% of CheckMarks in 2015 for $ 84 million given to shareholders, giving the company a value of just under $ 100 million (after dilution). Apart from CheckMark for Insight, there was an exit in the form of a 2013 issue of Weeks. Another shareholder in CheckMarks is K1 Capital, which holds about 15% of it.
Emanuel Ben-Zaken, CEO of the company, said: "It was quite a challenge. These are face-to-face deals where most of the process is done remotely, including signing the documents and raising the glass. In recent months we have had some inquiries from private equity funds around the world, and we met with them until the sky closed and decided to go to auction. "Our deal shows that when we have an understanding of the business and the potential of the company people buy by trust. We are very proud of this deal, people who make billion-dollar investments think five and ten years ahead, we do not believe the world will be destroyed."
Checkmarkers were represented by attorneys Yair Geva, Tomer Farkash and Miri Wong of the Herzog Fox Trustee firm, along with the law firm Wilkie Farr Galger. The acquirer was Helman Friedman represented by the US law firm Simpson Thatcher along with Donnie Tolidano, Roy Kenner and Nitzan Averbbach of the Erdinest law firm Ben Nathan, Toledano. Evercore Investment Bank accompanied the sale.
In the past year, the company has introduced an accelerated expansion process and closed significant contracts with huge companies. Checkmarx has been included, for the second consecutive year, in the list of 50 growing technology companies in Israel by the global accounting firm Deloite. According to the same list, Checkmarx is the cyber company with the highest revenue growth rate in Israel - for the second consecutive year. The company is also growing in terms of personnel. It currently employs 300 people, compared with 180 employees a year ago.
A year and a half ago, CheckMarks announced a significant $ 84 million raise from Insight Venture Partners. Since its inception to date, the company has raised $ 92 million in three rounds of funding.
Checkmarkers was founded in 2006 by Israeli cyber expert Matti Seaman and provides advanced information security solutions to prevent hackers' attacks. The company's flagship product is a system that analyzes and locates software codes, at the initial stage - at the development stage - of data security breaches and alerts them. At these stages, the security breaches are infinitely cheaper than later, after the product is already on the market. The company is considered a leading cyber company and serves over 700 global clients including Fortune 500, Samsung, Coca Cola, US Army and more.

 

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