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2/21/2013
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Entrust Tops 4-Year Financial, Business Goals Under Thoma Bravo Ownership

Entrust has grown total and product revenue every year since being acquired by Thoma Bravo in 2009

DALLAS -- February 21, 2013 -- Soon after private investment firm Thoma Bravo acquired security software company Entrust, Inc. in 2009, the San Francisco-based group established many aggressive financial goals as part of a multi-year strategy for the company. Four years later, Entrust has exceeded those expectations, transforming into a leading identity-based security company with a solid business model underpinned by 69% recurring revenue and a company-record EBITDA percentage of over 28%.

"Entrust achieved a great deal of success in 2012," said Entrust President and CEO Bill Conner. "We exceeded our revenue and earnings goals, and finished our fourth consecutive year ahead of the plan set with Thoma Bravo when they took us private four years ago. On top of our strong financial performance the past four years, we have transformed the company into a leader in identity-based security underpinned by our substantial Intellectual Property (IP) portfolio that we have built.

"Identity-based security has never been more relevant. The proliferation of digital identities -- beyond people to devices and applications -- and the increased volume and complexity of malware attacks renders traditional antivirus and perimeter security solutions ineffective. Our mobile and cloud-based identity security solutions help solve these growing cybersecurity challenges and have the company strategically positioned for our next stage of growth.

Key Four-Year Financial Accomplishments:

Product revenue increased to 50% of total revenue in 2012, up from 39% in 2009, a 14% Compound Annual Growth Rate (CAGR)

Risk-based authentication and fraud detection (led by Entrust IdentityGuard) product revenue increased to 24% of product revenue in 2012, a 16% CAGR

Recurring revenue (cloud subscription product revenue plus support and maintenance) increased to 67% of total revenue, up from 61% in 2009, a 9% CAGR

Cloud subscription product revenue increased to 59% of product revenue in 2012, up from 46% in 2009, a 24% CAGR

EBITDA increased 11% in 2012; a 43% CAGR as a private company

Deferred revenue increased to a record $64.5 million; a 17% CAGR

Company performance has led to more than $65 million in cash flow from operations and more than $108 million in EBITDA since going private in 2009

Successfully recapitalized the company in February 2011 and again in November 2012

"In just more than three years with the Thoma Bravo family, Entrust has met or exceeded every key financial metric that we established -- even more importantly, they continue to innovate and grow at a rate that exceed our expectations," said Scott Crabill, Thoma Bravo managing partner and Chairman of Entrust's Board of Directors. "Thoma Bravo truly appreciates Entrust's importance as a key player in the global information security framework. Entrust was our first investment in this space and helped Thoma Bravo become one of the largest private investors in security software and technology."

This comprehensive success enabled Entrust to recapitalize the company twice -- with a financing team co-led by Wells Fargo Capital Finance -- since the Thoma Bravo acquisition.

"We are very pleased to have been a part of the Entrust lending group since they went private in 2009 and are impressed with the growth in Entrust's recurring revenues and the consistent execution by the management team," said John Nocita, Managing Director of Wells Fargo Capital Finance.

Being a private company allowed Entrust to increase its focus on customers during a strategic business shift. It also allowed for the rapid innovation and transformation of the company's security products to address mobile, cloud, and physical/logical access environments. This resulted in growth, profitability and a business model transformation that created tremendous value for customers, employees and shareholders.

Key Technology & Product Highlights:

Entrust IdentityGuard delivers mobile smart credentials, capitalizes on BYOD momentum by leveraging Bluetooth and NFC technology on Apple iOS, Google Android and BlackBerry devices

Entrust IdentityGuard Named SC Magazine's 'Best Multifactor Authentication Solution'

Entrust IdentityGuard Received Perfect Score, 'Best Buy' Rating in SC Magazine Competitor Review

Bank of New Zealand uses Entrust's authentication framework, SDK to embed soft tokens into proprietary mobile applications for Apple iOS and Google Android platforms

New Entrust Discovery release simplifies and automates notifications, analysis and validation, all via a single cloud or on-premise service

Government Security News Named Entrust as a Winner in the "Best Certificate Management Solution" Category in GSN's Fourth Annual Homeland Security Awards Competition

Frost & Sullivan names Entrust the No. 2 provider of SSL certificates

Entrust demonstrates law enforcement solutions for secure collaboration, communication and mobile security technology during INTERPOL 81st General Assembly

Entrust PKI First to Adhere to Latest Common Criteria Protection Profile

Entrust and AirWatch form Relationship to Bring Innovative Solution to Improve Mobile

Entrust and MobileIron Work to Improve Access to Mobile Security and Enterprise Authentication Tools

Entrust, Good Technology Collaborate to Offer Seamless S/MIME Capabilities on Popular Mobile Devices

Entrust Expands Middle East Presence, Launches Office in Dubai Internet City

Entrust, Heartland Business Systems Helping Law Enforcement Agencies Deploy Advanced Authentication as Mandated by FBI's CJIS Policy

For more information about Entrust and the company's identity-based security solutions, please visit entrust.com. For details on Entrust's full line of SSL products and services, visit entrust.net.

About Entrust

A trusted provider of identity-based security solutions, Entrust secures governments, enterprises and financial institutions in more than 5,000 organizations spanning 85 countries. Entrust's award-winning software authentication platforms manage today's most secure identity credentials, addressing customer pain points for cloud and mobile security, physical and logical access, citizen eID initiatives, certificate management and SSL. For more information about Entrust products and services, call 888-690-2424, email entrust@entrust.com or visit www.entrust.com.

About Thoma Bravo

Thoma Bravo is a leading private equity investment firm building on a 30-plus-year history of providing equity and strategic support to experienced management teams and growing companies. Thoma Bravo invests across multiple industries, with a particular focus in enterprise and infrastructure software and financial and business services, and works in partnership with management to implement its operating expertise to build long-term value. The firm currently manages a series of private equity funds representing almost $4 billion of equity commitments. In software, Thoma Bravo has completed 58 add-on acquisitions across 26 platform companies with total annual earnings of approximately $1 billion. For more information, visit www.thomabravo.com.

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