Private equity firms are investing in the ITAD data security sector, seeing it as a growing market. Blancco’s acquisition by Francisco Partners and Guardian Data Destruction’s capital injection from Housatonic Partners exemplify this trend. These investments aim to capitalize on increasing corporate data security concerns and compliance needs. The ITAD data security market, dominated by Blancco, is difficult to assess in size due to the prevalence of small, private firms. However, a Compliance Standards assessment leads to a market valued at about $33-$35 million per year. This small figure is prompting data security solution companies to go after the enterprise market, creating fresh opportunities, fueled by investments from private equity firms such as Francisco Partners and Housatonic Partners, who are seeking to capitalize on increasing corporate data security concerns and compliance needs. While the market of enterprise data security during decommissioning is a promising one, investments made by private equity firms are not guarantee of success. Remember HiTech and CircleIT? So how prepared are companies like Blancco and Guardian Data Destruction? How do they compare versus the likes of Certus, Jetico, Ultra-X, FutureDial, and Blackbelt360.
