The Carlyle Group sells its majority stake in Cyberoam Technologies Private Limited to Sophos

Cyberoam’s revenues grew six times and profits nearly quadrupled during Carlyle’s investment

Mumbai, India – Global alternative asset manager The Carlyle Group (NASDAQ:CG) today announced that First Carlyle Ventures Mauritius, an affiliate of The Carlyle Group, has sold its majority stake in Cyberoam Technologies Private Limited, an Ahmedabad, India-based global network security appliances company spread across 125+ countries, to Sophos, a global provider of complete IT security solutions with more than 100 million users in 150 countries. Financial terms were not disclosed.

First Carlyle Ventures Mauritius acquired a majority stake in Elitecore Technologies Private Limited in 2007. Elitecore is an information technology products and software solutions company focused on Network Security and Operating Support System and/or Business Support System Solutions for telecom operators. The Network Security business of Elitecore was demerged to form Cyberoam in 2012.

Shankar Narayanan, Managing Director of The Carlyle Group, said, “Carlyle has worked with a talented management team with passion, energy and a commitment to innovation, which has led the company to a prominent position in emerging markets, including No. 1 market share in India and top two/three in Southeast Asia, Africa and the Middle East. During Carlyle’s investment, the company’s revenues grew over six times and profits nearly quadrupled.”

He added, “This is an example of our ability to provide strategic direction to portfolio companies to help the businesses quickly scale to create value for all stakeholders. We wish the company continued success going forward.”

Hemal Patel, Managing Director & CEO of Cyberoam, said, “Cyberoam is a fine example that not all successful technology product innovation happens in the Silicon Valley; it can happen anywhere, with the right drive and vision. We have been successful in building Cyberoam into a global IT products company that displays great product and team strength, and the proven ability to innovate.”

He added, “We are extremely happy to have partnered with Carlyle, which has provided strategic support and direction to the business and assisted in the fast growth of the company. Cyberoam and Sophos complement each other in many ways in a fast-growing network security market. Joining forces will allow us to offer more product innovation and value to our customers and channel.”

Signal Hill was the sole financial advisor and J. Sagar Associates was the legal advisor to Cyberoam.

About Cyberoam
Cyberoam is a global Network Security appliances company, offering future-ready security solutions to physical and virtual networks in organizations with its Next-Generation Firewalls and Unified Threat Management appliances. Cyberoam is highly regarded for its product innovation, quality, and world-class customer support. Consistently rated as a Visionary in Gartner’s Magic Quadrant for UTM, Cyberoam has received global awards and reviews for its excellence in product innovation. Cyberoam has grown faster than the market in last few years and gained cost leadership and operational efficiency advantages in the global network security market. Cyberoam has a worldwide sales and distribution channel spread across 125+ countries. For more information, please visit www.cyberoam.com

About Sophos
More than 100 million users in 150 countries rely on Sophos’ complete security solutions as the best protection against complex threats and data loss. Simple to deploy, manage, and use, Sophos’ award-winning encryption, endpoint security, web, email, mobile and network security solutions are backed by SophosLabs - a global network of threat intelligence centers. Sophos is headquartered in Boston, US and Oxford, UK. More information is available at www.sophos.com

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $185 billion of assets under management across 122 funds and 81 fund of funds vehicles as of September 30, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,450 people in 34 offices across six continents.

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