Trend Micro Attracts Interest from Major Private Equity Players
Deal News | Feb 13, 2025 | Zawya
Several prominent private equity firms, including Bain Capital, Advent International, EQT AB, and KKR, are actively exploring a bid to take Japanese cybersecurity firm Trend Micro private. With a market value of approximately $8.54 billion, Trend Micro has caught the attention of these firms due to interest in a leveraged buyout. The company's stock recently surged on the news of potential acquisition interest, highlighting increased private equity activity in the cybersecurity sector. Trend Micro has been considering a sale following acquisition interest last year. Founded in 1988, the firm is a well-established player in cloud computing, network, and endpoint security, with significant U.S. competitors. While private equity remains interested, a deal is not assured, and Trend Micro may opt to retain its independence.
Sectors
- Cybersecurity
- Private Equity
- Technology
Geography
- Japan – Trend Micro is a Japanese-based cybersecurity firm, and the potential buyout involves multiple international private equity firms targeting a Japanese company.
- USA – The participating private equity firms, such as Bain Capital and KKR, are headquartered in the United States, adding a cross-border element to the acquisition interest.
Industry
- Cybersecurity – This industry classification is relevant as Trend Micro is a key player in the cybersecurity sector, providing cloud computing, network, and endpoint security services.
- Private Equity – This industry is engaged due to the interest from several major private equity firms in acquiring Trend Micro.
- Technology – Trend Micro operates within the technology space, offering antivirus and security software solutions.
Financials
- 1.32 trillion yen ($8.54 billion) – The market value of Trend Micro as potential target of acquisition.
- 1,500 yen (16.05%) – The daily trade limit increase in Trend Micro's share price following news of buyout interest.
- 68.1 billion yen – Trend Micro's third-quarter net sales, showing a 6% growth.
- 14.8 billion yen – Trend Micro's third-quarter operating income, representing a 42% increase.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Trend Micro | Target Company | Company | A Japanese cybersecurity firm that is the target of potential acquisition by PE firms. |
| Bain Capital | Bidding Company | Company | A private equity firm interested in acquiring Trend Micro. |
| Advent International | Bidding Company | Company | A private equity firm considering a bid for Trend Micro. |
| EQT AB | Bidding Company | Company | A private equity firm that has shown interest in acquiring Trend Micro. |
| KKR | Bidding Company | Company | A global investment firm also interested in acquiring Trend Micro. |
| Crowdstrike, Microsoft, Palo Alto Networks, and McAfee | Rivals | Company | These are large U.S.-based rivals of Trend Micro in the cybersecurity sector. |