Sailpoint, an identity and access management (IAM) provider, now has new funding in the form of an unspecified investment reportedly worth several hundred million dollars from private equity fund Thoma Bravo.
Sailpoint co-founders Mark McClain and Kevin Cunningham would not disclose the size of the investment, but said Thoma Bravo, with $7.5 billion in capital under commitment, has a history of taking big stakes in growing companies destined for IPO or acquisition. This is the duo’s second startup, launched in 2005, after their first — Waveset — was acquired by Sun Microsystems, which was subsequently itself acquired by [company]Oracle[/company].
The Austin, Texas-based company had previously raised $21 million in three rounds of venture funding from Austin Ventures, Silverton Partners and Lightspeed Venture Partners. The company reached profitability a few years ago and hasn’t taken VC funding since, a spokesman said.
IAM has been a hot market of late with [company]IBM[/company] buying up two IAM companies — Lighthouse and Crossideas in the past month. Other companies in the IAM space include [company]Ping Identity[/company] and [company]Okta[/company].
Sailpoint launched in the post-Sarbanes-Oxley era when it became apparent that non-technical business users would have to deal with tricky document access requirements.
“With auditors coming in to see who has access to what, business users were asked to review access of employees and even partners to documents. That required a translation of business detail around Active Directory groups membership as well as integration with accounting systems,” Cunningham said.
The company says it brings together single-sign on, password management, user access provisioning in both SaaS and on-premises and will continue to offer both deployment models going forward. Some conservative financial management companies still prefer to run their own applications, Cunningham said.
As for what to do with all that new cash? Cunningham said Thoma Bravo has deep enough pockets to “grow us organically or inorganically,” he said.