Target Information

Promon AS, based in Oslo, Norway, is a leading provider of application shielding software that has established itself as a pioneer in the industry since its inception in 2006. The company has developed its proprietary platform, SHIELD™, which offers advanced security measures designed to protect applications from malware and application tampering, ultimately safeguarding applications on over 300 million devices worldwide. With a strong client base of over 250 customers and more than 25 strategic partners across diverse industries, Promon has consistently focused on product innovation and excellence in application protection.

The company has experienced significant growth and has expanded its operations to multiple countries including Norway, Germany, the UK, the US, Hong Kong, and India. Promon's technology has been validated by various blue-chip clients in sectors ranging from finance to healthcare, cementing its reputation as a trustworthy solution provider in the application security market.

Industry Overview

The application security industry has been witnessing rapid growth, particularly in response to the increasing number of cyber threats targeting software applications. As businesses strive to protect sensitive data and maintain customer trust, the demand for robust application security solutions has surged globally. This trend is further amplified by the rise in remote workforce arrangements and the accelerated adoption of digital transformation initiatives across various sectors.

In Norway, the emphasis on cybersecurity is paramount, as businesses are under continuous pressure to safeguard their operations against persistent malware attacks. The country's digital landscape is evolving, with both public and private sectors investing considerable resources to enhance their security frameworks. As organizations become more aware of the vulnerabilities inherent in digital applications, the need for innovative solutions like Promon's app shielding technology is increasingly pronounced.

The cybersecurity sector is also characterized by substantial investment opportunities, with private equity firms actively seeking to acquire stakes in companies that demonstrate proven technology and scalability potential. This environment fosters growth for established players like Promon, as they aim to increase their market share and enhance their offerings in a competitive landscape.

As the application security market continues to expand, driven by both regulatory demands and consumer expectations, companies are competing to offer the most comprehensive and effective solutions. This has led to strategic partnerships and investments within the industry, further solidifying the importance of collaboration in achieving sustained success.

Rationale Behind the Deal

Promon's partnership with the GRO-led consortium marks a pivotal moment in the company's trajectory, as it aims to accelerate global growth and reinforce its leadership position in the application shielding segment. The investment will enhance Promon's sales and marketing efforts, facilitate ongoing product innovation, and enable the company to expand across various industry verticals worldwide. The timing of this partnership is crucial, given the expected surge in demand for application security solutions in light of increasing cybersecurity threats.

The involvement of multiple investors, including Kirk Kapital and Trifork, underscores the confidence in Promon's growth potential and the strategic value of their technology. By leveraging the collective expertise and resources of these partners, Promon is well-positioned to capitalize on emerging market opportunities and establish itself as a global category leader in application shielding.

Information About the Investor

The GRO consortium, comprising GRO Capital and Kirk Kapital, is renowned for its focus on investing in mature B2B software and tech-enabled companies with strong growth prospects. With approximately EUR 430 million in assets under management, GRO demonstrates a commitment to actively developing portfolio companies to create long-term value. The team's extensive experience in software investments positions them as valuable partners for Promon as it embarks on its scaling journey.

Kirk Kapital, a family-owned investment firm managing approximately EUR 1.5 billion in assets, emphasizes long-term value creation by partnering with entities poised for growth in sustainable industries. Their involvement in Promon's funding reflects confidence in the company’s capacity to thrive in the application security landscape.

View of Dealert

Overall, this investment in Promon appears to be a strategically sound move, as the company has already established itself as a market leader in application shielding technology. The partnership with GRO and Kirk Kapital is timely, as financial backing and industry expertise will allow Promon to strengthen its market position while adapting to evolving cybersecurity challenges. The anticipated closing of the transaction in January 2022 sets the stage for immediate benefits from increased resource allocation and strategic direction.

In addition, the joining forces with Trifork introduces further potential for Promon to integrate cutting-edge IT solutions and foster innovation that resonates with the industry’s demands. Given the looming concern of application vulnerabilities faced by organizations today, Promon's technology will likely gain even more prominence in the coming years, driving revenue and customer loyalty.

However, it's essential for Promon to navigate this phase of growth carefully, maintaining its commitment to quality and customer satisfaction while scaling operations. If executed successfully, this partnership has the potential to position Promon for sustained success as a global leader in application security.

View Original Article