Audax Group is sounding out buyers for BlueCat Networks in a potential sale that could value the cybersecurity provider at more than $1.5bn, according to people familiar with the matter cited by Reuters.

The US private equity firm, which bought BlueCat in 2022, has appointed JPMorgan to advise on the sale process, sources said. A transaction could value the business at between $1.5bn and $2bn.

Toronto-based BlueCat develops software used for network control, automation, and security. The company generates more than $100m in annual revenue and serves enterprise customers seeking to manage increasingly complex digital infrastructure.

Security software remains an active area for private equity-backed M&A, as investors target businesses with recurring revenue, sticky customer bases, and long-term growth tied to rising cyber risk.

Representatives for Audax and BlueCat did not respond to requests for comment, while JPMorgan declined to comment.

The potential sale would mark another technology exit for Audax and reflects sustained appetite among buyout firms for cybersecurity assets that can support leverage and command premium valuations.

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