Hg Acquires Stake in Cybersecurity Firm A-LIGN

Key Takeaways

Hg Capital acquired Warburg Pincus.
Sector: Technology Software & Gaming.
Geography: United States.

Analysis

Hg, a leading investor in European and transatlantic software and services businesses, has acquired a majority stake in A-LIGN, a Tampa, Florida-based provider of technology-enabled cybersecurity compliance services. The investment, made through Hg's Genesis Fund, aims to accelerate A-LIGN's global expansion and enhance its service offerings in response to the growing demand for compliance solutions amid increasing cyber threats.

Founded in 2009, A-LIGN has established itself as a leader in cybersecurity compliance, serving over 5,700 clients with audits and assessments including SOC 2, ISO, HITRUST, FedRAMP, CMMC, and PCI standards. The company's customer-centric approach and proprietary technology have enabled it to achieve over 50% compounded annual growth over the past 15 years.

Scott Price, CEO of A-LIGN, said, “This new partnership comes at the perfect time as we enter our next phase of growth. Hg’s deep expertise and proven record in scaling tech-enabled services businesses globally, combined with their operational resources, make them the ideal partner to help us provide the best possible services to our customers.”

Hg partners Hector Guinness and Joris van Gool noted that A-LIGN’s proprietary platform and strong client relationships make it a standout in a fast-growing sector. The partnership will allow A-LIGN to expand into new regions, broaden its service lines, and support more enterprise clients worldwide.

The transaction also marks the exit of Warburg Pincus, which had backed A-LIGN through a period of transformative growth. Though the financial terms were not disclosed, the deal reflects continued investor interest in cybersecurity, compliance automation, and regulated markets.