Steve Mnuchin’s private equity firm buys Zimperium for $525 million • The Register

Former US Treasury Secretary Steve Mnuchin’s private equity firm has announced plans to acquire a majority stake in a mobile cybersecurity company for more than half a billion dollars.

Liberty Strategic Capital, based in Washington DC, made the Investment of $525 million in Zimperiumits first to grant it a majority stake since the company launched in 2021.

The purchase will also install Mnuchin, who was appointed Treasury boss by Donald Trump in 2017, as chairman of Zimperium’s board.

Steven Mnuchin testifying before the Senate Finance Committee during its confirmation hearing in 2017

SoftBank, which led one of Zimperium’s previous investment rounds, will continue as a minority shareholder. Previous Zimperium investors include private equity firm Warburg Pincus, Sierra Ventures, Telstra Ventures and Samsung.

The mobile security company was the first to identify the Android Trojan GriftHorse last year, whose malware has infected more than 10 million Android devices worldwide.

Zimperium’s products are geared towards mobile device security, which Mnuchin says is an integral part of life. Their integral nature, in turn, makes them a prime target for cyberattacks.

“It’s clear that mobile is the new frontline for cybersecurity. We all need to focus more on protecting mobile devices and apps…Employees are using their own devices, which is driving businesses to recognize growing need for a high-end online cybersecurity solution designed for the mobile environment,” Mnuchin said.

Mnuchin has prioritized investments in cybersecurity since founding his private equity firm last year. Liberty describes itself as a company “focused on strategic investments in technology, financial services and fintech, and new forms of content”.

Absent from his portfolio, mnuchin saidis the new Trump Media & Technology group.

The investment in Zimperium gives Liberty its fifth stake in a company. In 2021, he was a lead investor in Series F of Cybereason and Series E of application security firm Contrast Security. In 2022, it made leading investments in BlueVoyant enterprise cyber defense platform and Satellogic real-time satellite data, from which it later exited.

Excluding the Mnuchin offering, which is expected to close in the second quarter of 2022, Zimperium has raised a total of $72 million over five funding rounds. According to Crunchbase, Zimperium has a post-money valuation of between $100 million and $500 million, though the company disputes those numbers.

Zimperium, based in Dallas, Texas, reportedly saw a 53% increase in annual recurring revenue last year, which CEO Shridhar Mittal largely attributed to the pandemic and remote workers.

Zimperium has collaborated with government agencies and private companies in the past, work with NIST on a zero-trust architecture and a partnership with Los Angeles to develop a mobile security application available for free for residents.

It was also the only mobile device security company to make Deloitte’s list of fastest growing technology companies. for 2021. ®

Michael J. Chiaramonte