Company Overview

PRIME exits® is the exclusive M&A representative for a founder-led AI security monitoring company serving mid-market and enterprise clients across financial services, healthcare, and critical infrastructure. The platform leverages proprietary machine learning models to deliver real-time threat detection, behavioral anomaly analysis, and automated incident response — reducing mean time to detection (MTTD) by over 60% compared to legacy SIEM solutions.

The company was founded approximately eight years ago and has grown organically to $12 million in annual revenue with no outside institutional capital. Its go-to-market motion is built on direct enterprise sales and a channel partner network of 14 MSSPs. The majority of customers operate under multi-year subscription agreements, providing strong revenue predictability and high net revenue retention.

Key Investment Highlights

Recurring revenue

• 82% ARR, avg contract 2.4 yrs

Client retention

• Net revenue retention 118%

Proprietary IP

• 3 patents, 2 pending

Growth rate

• 31% YoY revenue growth

Compliance coverage

• SOC 2 Type II, FedRAMP In Process

Customer base

• 94 enterprise clients, no single >9%

Financial Review

Revenue of $12,000,000 is composed of approximately 82% recurring SaaS subscriptions and 18% professional services. Normalized EBITDA of $2,300,000 (19.2% margin) reflects owner compensation adjustments and one-time integration costs related to a 2023 platform migration. The business operates with minimal capex requirements and strong free cash flow conversion. A full quality of earnings report is available post-NDA to qualified buyers.

Reason for Exit

The founding team is seeking a strategic or financial partner to accelerate expansion into the federal and defense sectors, support international go-to-market efforts, and provide partial liquidity to founders after eight years of bootstrap growth.

Asking Price & Deal Structure

Asking price

$16,100,000 (7× EBITDA)

Cash at close

75–80%

Rollover equity

20–25% (founders stay 2 yrs)

Earn-out (optional)

Tied to ARR milestones

Ideal Buyer

Best suited for cybersecurity platforms executing product-line roll-ups, private equity firms targeting AI-native infrastructure software, MSSPs seeking proprietary detection IP, or strategic acquirers in the GRC and SOC tooling space. A management team ready to transition is in place and willing to remain through a defined integration period.

Inquire about this listing

To receive the Confidential Information Memorandum (CIM), complete both steps below using the listing code and title exactly as shown.

Step 1

Complete a Buyer Profile to pre-qualify and confirm strategic fit. Only required once.

Step 2

Sign the NDA with listing code X-AI007 and listing title AI Security Monitoring Platform.

Contact Listing Representative: Matt Baker , Dr. Allen Nazeri DDS MBA