British firm buys majority stake in $1B Tampa cybersecurity firm

European investment firm Hg has acquired a majority stake in Tampa cybersecurity firm A-LIGN in a deal that values the privately held tech company at $1 billion — making it a so-called unicorn for reaching that milestone.

London-based Hg, which specializes in European and transatlantic software and services businesses, acquired the majority stake in A-LIGN from Warburg Pincus, according to a statement. Financial terms of the deal for A-LIGN, founded by IT entrepreneur Scott Price in 2009, weren’t disclosed.

A-LIGN's cybersecurity compliance audits and related assessments, according to a statement, allow “organizations to provide assurances to their customers that sensitive data is protected, and that mission-critical operations are conducted with integrity.” A-LIGN has become an industry leader in cybersecurity compliance services, serving over 5,700 clients with audits in the past 15 years. 

The company has posted over 50% compounded annual growth over the past 15 years, and officials project it will reach $200 million in revenue in 2025. 

The partnership with Hg, A-LIGN officials say, will support the company’s “ambitious growth plans, leveraging Hg's extensive network to accelerate its global expansion, and building on Hg's commitment and expertise in data and AI to drive significant value for A-LIGN's customers.”

A-LIGN joins Tampa-based ReliaQuest and KnowBe4, founded in Clearwater, as local cybersecurity firms that have reached $1 billion valuation.

"This new partnership comes at the perfect time as we enter our next phase of growth,” Price says in the statement. “Hg's deep expertise and track record in scaling tech-enabled services businesses globally, combined with world-class operational resources, makes them the ideal partner to help us provide the best possible services to our customers. I'd also like to thank Warburg Pincus and FTV Capital for their support over the last few years, in helping us reach this milestone.

Jefferies LLC served as lead financial advisor and Guggenheim Securities LLC served as financial advisor to A-LIGN and Warburg Pincus. Cleary Gottlieb Steen & Hamilton LLP served as legal counsel for A-LIGN and Warburg Pincus. Harris Williams served as financial advisor to Hg, with Latham & Watkins serving as Hg's legal counsel.