Liberty Strategic Capital, led by former Treasury Secretary Stephen T. last year, the Mnuchin-founded private equity firm announced today it has acquired a majority stake in Zimperium, a $525 million mobile security startup.
With Zimperium, the company is diving into mobile security, which Mnuchin considers the cutting edge of cybersecurity today. As he explains to employees who have been using their devices for years, companies need a way to keep them safe, even if they don’t directly control the device.
“We all need to pay more attention to the security of mobile devices and applications. Liberty Strategic Capital is investing in Zimperium because they have shown they can lead this multi-billion dollar market,” he said in a statement announcing the deal.
The company covers three segments of the mobile market, namely device security, mobile application security and mobile threat intelligence. Last year, the company also found spyware called PhoneSpy among 23 Android apps designed to steal data. As gaming-updates’s Carly Page explained during the news release:
Researchers at mobile security company Zimperium, who searched 23 apps for PhoneSpy, say spyware can access a victim’s camera and capture real-time photos and videos, and warn that it could be used for personal and commercial purposes. , blackmail and espionage. This happens without the knowledge of the victim, and Zimperium notes that unless someone is monitoring their web traffic, it will be difficult to detect.
The company did not share specific earnings data, but did report a 53% increase in annual recurring revenue (ARR). The company’s CEO Sridhar Mittal expects the investment to continue to drive this growth.
“We have helped leading public and private organizations around the world strengthen mobile security, and as we enter a phase of rapid growth to help more organizations, Secretary Mnuchin and the Liberty Strategic Capital team will be a huge asset to our company. Next,” Mittal said in a statement.
Under the terms of the deal, SoftBank will own a minority stake in the company, and Mananchin will head the company’s board of directors. The deal is expected to close in the coming months.
The company has been around since 2011 and has raised $72 million, according to Crunchbase. The latest round was in 2018, a modest $12 million investment led by Sierra Ventures. A minority investor in SoftBank invested in the company a year ago, raising a $15 million round.