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  • Audax Private Equity announces strategic growth investment in BlueCat Networks

This agreement to invest in BlueCat is a significant milestone for the company and for BlueCat’s customers, employees, and stakeholders.

TORONTO, June 23, 2022 – Audax Private Equity (“Audax”) today announced it has entered into a definitive agreement to make a strategic growth investment in BlueCat Networks (“BlueCat” or the “Company”), a leading provider of mission-critical, infrastructure software. Financial terms of the transaction were not disclosed.

Founded in 2001, BlueCat is a leading provider of mission-critical, infrastructure software for network control, automation, and security. BlueCat’s Adaptive DNS™ platform is a dynamic, open, secure, scalable, and automated resource that supports the most challenging digital-transformation initiatives, such as adoption of hybrid cloud, virtualization, and rapid-application development. Some of the largest global enterprises, including 30% of the Fortune 100, trust BlueCat to provide the foundation for digital-transformation strategies such as infrastructure and application modernization, and manage cybersecurity risk through protective DNS security.

“Since our founding more than two decades ago, BlueCat has strived to ensure reliable, secure, and rapid access from users and devices to clouds and applications — making DNS an enabler of digital transformation and cloud adoption. This investment represents a significant milestone for our company, customers, employees, and all of our stakeholders, as we commence the next phase of our growth journey. Audax has a lengthy and reputable track record of successfully partnering and working collaboratively with software and technology companies in infrastructure and security, in particular by deploying its Buy & Build strategy to expand offerings and move into adjacent markets, and we look forward to benefiting from the firm’s value-add resources,” said Stephen Devito, Chief Executive Officer of BlueCat Networks.

“Having helped some of the biggest enterprises in the world overcome the compounding complexity in their networks, BlueCat possesses a high quality and innovative business model that is primed for both organic and inorganic growth,” said Iveshu Bhatia, Managing Director at Audax. “Importantly, BlueCat is positioned well to capitalize on the growth in network complexity driven by device expansion, cloud adoption and security requirements with its existing customers, and accelerate new customer growth through additional investment in channel partnerships. We are thrilled to have the unique opportunity to work closely with Stephen and the entire BlueCat management team to help take BlueCat to the next level,” said Timothy Mack, Managing Director at Audax.

Doug Grissom, Managing Director at MDP, said, “It has been a pleasure to work with Stephen and the entire BlueCat team and help them grow the business and extend BlueCat’s leadership as the trusted partner for companies implementing digital-transformation initiatives. We are confident that BlueCat has a bright future ahead in partnership with Audax.”

The transaction is anticipated to close in the third quarter of 2022 and is subject to certain closing conditions, including the waiting period required by the Hart-Scott-Rodino Act. Upon closing, Audax will own a controlling stake in BlueCat, with MDP fully realizing its investment in BlueCat.

William Blair and Nomura Securities International, Inc. are serving as financial advisors to BlueCat. Ropes & Gray is serving as legal counsel to Audax and Kirkland & Ellis is serving as legal counsel to BlueCat and MDP.

About BlueCat
BlueCat is the Adaptive DNS™ company. The company’s mission is to help the world’s largest organizations deliver reliable and secure network access from any location. To do this, BlueCat re-imagined DNS. The result – Adaptive DNS™ – is a dynamic, open, secure, scalable, and automated resource that supports the most challenging digital transformation initiatives, like adoption of hybrid cloud and rapid application development. The company is headquartered in Toronto and New York and has additional offices throughout the world, including Germany, the United Kingdom, Japan, and Singapore.

Learn more at bluecat.com.

About Audax Private Equity
Audax Group is a leading alternative investment manager with offices in Boston, New York, and San Francisco. Since its founding in 1999, the firm has raised over $30 billion in capital across its Private Equity and Private Debt businesses. Audax Private Equity has invested over $9 billion in 150 platforms and over 1,100 add-on companies, and is currently investing out of its $3.5 billion, sixth private equity fund. Through its disciplined Buy & Build approach, Audax Private Equity seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. With more than 300 employees, Audax is a leading capital partner for North American middle market companies. For more information, visit the Audax Private Equity website: www.audaxprivateequity.com or follow us on LinkedIn.

About Madison Dearborn Partners, LLC
Madison Dearborn Partners, LLC (“MDP”) is a leading private equity investment firm based in Chicago. Since MDP’s formation in 1992, the firm has raised aggregate capital of over $28 billion and has completed over 150 investments. MDP invests across five dedicated industry verticals, including basic industries; business and government software and services; financial and transaction services; health care; and telecom, media and technology services. For more information, please visit www.mdcp.com.


For Audax:
Julie Rudnick / Zachary Tramonti
FGS Global
[email protected]

For BlueCat:
Pierre Hamilton
Senior Manager, Corporate Communications
[email protected]

For Madison Dearborn Partners:
Jake Yanulis / Rohan Yaradi
Abernathy MacGregor
[email protected]

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