Private equity firm TPG Capital today announced it has signed a deal to acquire cybersecurity firm Thycotic Software Ltd. for $1.4 billion.

Founded in 1996, Thycotic offers privileged access management solutions that are designed to protect an organization’s data, devices and code across cloud, on-premises data center and hybrid environments. The company’s PAM solutions are said to reduce the complexity and cost of securing privileged access.

Thycotic is perhaps best known for its Secret Server platform. As noted when Thycotic purchased Onion ID in June, Secret Server is a kind of virtual vault. It’s designed to store the passwords of sensitive employee accounts, such as administrator accounts with access to a company’s cybersecurity tools or network devices. Secret Server keeps login credentials in an encrypted format and provides tools for managing them.

The company has more than 12,500 customers worldwide ranging from small businesses to the Fortune 500. Clients include BAE Systems plc, Honda Motor Company Ltd., Cisco Systems Inc., the U.S. Department of Agriculture, ESPN Inc., BankUnited Inc., HubSpot Inc. and BP plc.

Once the acquisition is finalized, TPG intends to merge Thycotic with Centrify Corp., another PAM solutions company TPG announced it had signed a definitive agreement to acquire in January. The combination of the two companies is claimed to create a dynamic identity solutions provider offering scalable, world-class products in an environment where cyberattacks are increasing in frequency and sophistication.

Following the merger, Art Gilliland, current chief executive officer of Centrify, will serve as the CEO of the combined business while Thycotic CEO James Legg will serve as president.

“The increasing cost and impact of cyber breaches coupled with the explosive growth of cloud services and the interconnection of networks has driven rapid adoption of identity security software,” Gilliland said in a statement. “Now more than ever, organizations are looking to strengthen their capabilities to ensure improved protection from the ever-increasing risk of cyber-intrusions. The combined company will deliver one of the most comprehensive product offerings in the business with the ability to adapt and scale to meet the evolving needs of customers.”

Thycotic is being purchased by TPG from majority owner Insight Partners, while Centrify is being purchased from Thoma Bravo. Thoma Bravo and the Public Sector Pension Investment Board are taking minority stakes in the combined company under the deal.

Image: Thycotic