TA invests C$98m in internet security

Boston-based TA Associates plans to grow software company Radialpoint by capitalising on the surge in broadband use in emerging markets. The firm closed its 10th buyout fund on $4.5bn in 2006, and its sixth Atlantic and Pacifc fund on $1.75bn in November 2007.

US private equity firm TA Associates has invested C$98 million ($95 million; €65 million) in software company Radialpoint.

Montreal-based Radialpoint provides security services to broadband service providers such as anti-virus, pop-up blocker and parental control.

Hythem El-Nazer

“The three broad growth strategies [for Radialpoint] are increasing penetration at your existing customers, the second is offering new products and services to your customers and the third is adding new customers,” TA Associates vice president Hythem El-Nazer told PEO.

El-Nazer said that increasing broadband penetration in the emerging markets means that the market for Radialpoint’s products is growing quickly. Subscriptions to broadband service providers are expected to grow from 350 million to 570 million by 2012, according research company Parks Associates.

Radialpoint is currently focused on North America and Europe but emerging markets are a component of its growth strategy.

“We don’t expect the company to be directly affected by the economic slowdown, said El-Nazer. “People are still going to continue to use the internet and the internet proliferation is only going to increase.”

Boston-based TA Associates manages more than $12 billion. The firm makes minority and majority investment incorporating equity cheques that range from $50 million to $600 million.

The firm closed its sixth Atlantic and Pacific Fund, geared towards non-US investors, on $1.75 billion in November 2007. The firm closed TA X on $3.5 billion and its second mezzanine fund on $777.5 million in March 2006.