PatchLink Inc. is getting a $30 million to $40 million venture capital investment, some of which it expects to put towards an acquisition currently under negotiation. The patch management software company is not ruling out the possibility of its target being a competitor.
The firm has secured the $30 million from investors including BA Venture Partners with Bay Partners and Government of Singapore Investment Corp. The other $10 million appears to be at least partly contingent on an acquisition going through.
PatchLink Chief Executive Officer, Sean Moshir, said the money will also be used to expand the company geographically, and to increase sales and marketing and research and development. He declined to name any potential acquisition targets.
We’ll be using some of it to fund strategic acquisition, Moshir told ComputerWire. We’re looking for anything that would be complementary to our products in the security space… We’ve been talking to a few companies.
PatchLink makes agent-based software that automates the process of pushing software patches out to hosts. It also sells software for helping administrators remediate potentially vulnerable configurations.
The company has been around since 1991, having made a switch from anti-virus to patch management in 1996. It received a $5.6 million funding round in 1999. Moshir said the firm is cash flow positive and saw a tenfold increase in bookings in 2003 versus 2002.
PatchLink competes against the likes of Shavlik, BigFix, St Bernard Software, and Citadel Security Systems. Moshir said that PatchLink’s maturity is helping it win sales, and that the market overall is booming.