Vista Equity Partners has agreed to acquire the public key infrastructure (PKI) business unit of identity and access management provider HID. The PKI business provides digital trust and identity security tools for government, regulated and compliance-focused organizations. It verifies human and machine identities, including employees, contractors, and AI agents accessing secure systems, and validates connectivity across IT infrastructure, applications, and AI agents exchanging sensitive information.
The business is also involved in quantum-resilient cryptography, designed to withstand attacks from quantum computers that could break current encryption. Vista’s Foundation Fund will execute the carve-out, and the business will operate as a standalone company post-transaction, expected to close in the fourth quarter. Stephen Foster, managing director at Vista’s Foundation Strategy, highlighted that identity security relies on access and trust, with PKI enabling verification of who or what connects to systems.
He noted an explosion in digital machine identities due to AI agent deployment, a trend expected to continue. The PKI unit comprises four products that issue and manage certificates at scale for government and enterprise customers, backed by a large, loyal blue-chip customer base. Vista plans to evaluate both organic and inorganic growth strategies post-transaction, including potential M&A.
The deal aligns with Vista’s Foundation Fund strategy of investing in mission-critical enterprise software and scaling with partners, as demand grows from regulated customers needing compliance and security for AI-driven systems.
Source: PE Hub · Summarized by HeadlinesBriefing