Comvest Credit Partners Backs CyberMaxx with Debt Financing for Refinancing, Acquisition
Comvest Credit Partners, a prominent provider of tailored, flexible direct lending solutions to middle-market companies, is pleased to announce its role as Administrative Agent and sole lender in a senior secured credit facility (the “Financing”) for CyberMaxx (the “Company”). Headquartered in Chicago, CyberMaxx is a fast-growing leader in managed cybersecurity services. This recent financing initiative supports the Company’s refinancing needs and strategic acquisition of Cybersafe Solutions, LLC (“Cybersafe”), enhancing its service offerings and expanding its footprint within the cybersecurity sector. CyberMaxx is currently a portfolio company of Periscope Equity, a private equity firm renowned for its focus on technology-driven investments.
Expanding CyberMaxx’s Cybersecurity Capabilities
CyberMaxx specializes in providing comprehensive managed detection and response (MDR) cybersecurity solutions to enterprise-level clients across multiple sectors. These sectors include, but are not limited to, healthcare, financial services, utilities, and various other industries that demand high-level security protection. With the surge in cyber threats and increasing regulatory requirements, companies are prioritizing robust cybersecurity strategies, often opting to partner with specialized providers like CyberMaxx to manage and mitigate these risks effectively.
The acquisition of Cybersafe Solutions marks a significant milestone in CyberMaxx’s growth trajectory. Cybersafe, known for its continuous MDR services, complements CyberMaxx’s existing capabilities. The integration of Cybersafe’s expertise and broader security services adds substantial depth and breadth to CyberMaxx’s service portfolio, reinforcing its ability to deliver top-tier cybersecurity solutions tailored to meet the evolving needs of its clients. The acquisition not only enhances the technical proficiency of CyberMaxx’s team but also expands its customer base and market reach, positioning the Company as a more formidable player in the managed cybersecurity services space.
Strong Market Tailwinds Driving Demand for Cybersecurity Solutions
Commenting on the transaction, Brian Cercek, Managing Director and Co-Head of Software & Technology Services at Comvest Credit Partners, highlighted the strategic importance of the deal. He noted, “CyberMaxx is a rapidly growing company in the cybersecurity space, which is buoyed by strong tailwinds as companies increasingly turn to outsourced cybersecurity services to protect against attacks.” Cercek emphasized how the rising frequency and sophistication of cyber threats, combined with the growing complexity of IT environments, have prompted organizations to seek reliable third-party providers who can deliver continuous protection and threat monitoring.
He further added, “Comvest Credit Partners was pleased to serve as CyberMaxx’s lender and support the Company’s ability to scale its security resources.” Through its role as the sole lender and Administrative Agent, Comvest Credit Partners demonstrated its commitment to structuring a financing solution that is not only responsive but also flexible enough to accommodate CyberMaxx’s current and future growth initiatives.
Partnership with Periscope Equity and Focus on Technology Sector
Joe Higginbotham, Managing Director and Co-Head of Software & Technology Services for Comvest Credit Partners, expressed enthusiasm about the firm’s ongoing relationship with Periscope Equity. “We look forward to growing our relationship with Periscope Equity, a technology-focused sponsor, and are excited to close another investment in the technology vertical, an area of continued focus,” he stated.
Periscope Equity has a strong track record of partnering with high-potential technology companies, supporting them with strategic guidance, operational expertise, and capital to drive long-term growth. The collaboration between Comvest Credit Partners and Periscope Equity highlights a shared vision of backing innovative companies at the forefront of their industries. This particular investment underscores Comvest’s strategy of prioritizing the software and technology services sector—a vertical that continues to exhibit robust demand and substantial growth potential.
Eric Hinkle, a Principal at Periscope Equity, echoed similar sentiments about the successful financing. He remarked, “The Comvest Credit Partners team brought a responsive and creative approach in structuring a flexible facility that helps accelerate CyberMaxx’s organic and acquisitive growth.” Hinkle emphasized the value that Comvest brought to the table, particularly in tailoring a credit facility that aligns with CyberMaxx’s strategic objectives and capital requirements.
Comvest Credit Partners’ Approach to Middle-Market Lending
Comvest Credit Partners is widely recognized for its expertise in providing customized credit solutions to middle-market companies across a range of industries. Its lending approach is centered on flexibility, speed, and creativity, enabling borrowers to access the capital they need for a variety of purposes—whether it be refinancing existing debt, funding growth initiatives, supporting acquisitions, or enhancing working capital.
The firm’s role as the sole lender and Administrative Agent in CyberMaxx’s financing underscores its ability to take a leadership position in complex transactions. By offering a single-lender solution, Comvest simplifies the financing process, providing borrowers with a streamlined experience and eliminating the complexities often associated with multi-lender syndicates.
Moreover, Comvest’s sector expertise, particularly in technology and software services, positions the firm as a strategic financing partner for companies operating in fast-evolving markets. Its deep understanding of the unique challenges and opportunities in these sectors allows Comvest to structure credit facilities that are not only flexible but also aligned with the long-term vision of its borrowers and their sponsors.
The Growing Importance of Managed Cybersecurity Services
The broader backdrop to this financing deal is the increasing importance of managed cybersecurity services in today’s digital landscape. Organizations across industries face mounting cyber risks, ranging from ransomware attacks and phishing scams to data breaches and insider threats. The financial and reputational consequences of such incidents can be severe, prompting businesses to invest heavily in cybersecurity infrastructure and expertise.
However, many organizations lack the internal resources or technical know-how to maintain around-the-clock cybersecurity vigilance. This has led to a significant uptick in demand for third-party managed security service providers (MSSPs) like CyberMaxx. By outsourcing their cybersecurity needs, companies can leverage the specialized skills, advanced technology, and dedicated focus of MSSPs, ensuring comprehensive protection without the overhead of building an in-house security team.
The acquisition of Cybersafe by CyberMaxx is a strategic response to this growing demand. By broadening its service offerings and integrating additional expertise, CyberMaxx is better positioned to deliver the proactive, continuous monitoring and incident response services that clients require in today’s threat landscape.
