Audax Group is reviewing the sale of BlueCat Networks, putting the software company's valuation at around $1.5 billion.

It is understood that the private equity firm has hired JPMorgan to run its sale process, which is currently in the works, a Reuters article stated. 

Audax Group, a lower middle-market private equity firm, purchased BlueCat Networks in 2022. The firm focuses on driving a "buy and build" approach, partnering with management teams to help accelerate performance across North America and Europe. 

BlueCat provides infrastructure software for network control, automation and security. The provider is one of Audax's several investments into software and technology, including Fortis, Guidepoint Security, Integrate and Flashpoint, among others.

The Canada-based software company, BlueCat, generates more than $100 million in annual revenue, putting the company's value at around $1.5 to $2 billion.

Audax Group and BlueCat Networks did not respond to requests for comment and JPMorgan declined to comment, Reuters reported.

Software security has become a popular sector for mergers and acquisitions, driven by a high demand for AI and machine learning platforms. 

Financial and risk advisory solutions company, Kroll, noted in a  2025 cybersecurity software report that M&A activity in the sector remained high, with deal value in the first quarter of 2025 exceeding 90% of 2024's total value. This was primarily driven by Google's acquisition of Wiz for $32 billion.

Generative AI and cybersecurity remains a threat for investors as hackers are using these tools to try and gain access to software, confidential information and company finances. 

"Cyber security in 2025 represents a dynamic, high-growth sector driven by structural demand, platform consolidation and continuous innovation — making it one of the most compelling areas for long-term strategic allocation," the report continued.

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