At a glance.
- Thoma Bravo calls off Imprivata sale.
- Demand for remote work tools surges as coronavirus keeps people home.
- Security firms offer free services to hospitals during pandemic.
- Early-stage cybersecurity investments were declining before COVID-19 took hold.
Mergers and acquisitions.
Private equity firm Thoma Bravo has called off its auction for Massachusetts-based healthcare security company Imprivata due to market uncertainty, CRN reports. The company was expected to sell for more than $2 billion.
Washington, DC-based cybersecurity firm ShorePoint, Inc has acquired Chantilly, Virginia-based big data analytics company Cyberyllium. ShorePoint's co-founder and CEO Matt Brown stated in a press release, "Cyberyllium represents a perfect fit to ShorePoint's strategic growth plan by further strengthening our current cybersecurity offerings which help federal and civilian agencies implement and maintain the technologies, methodologies and processes for managing threats. As CDM transitions to a dashboard ecosystem solution based on the 'ELK stack' of Elastic, Logstash and Kibana, ShorePoint is now firmly positioned to fill a huge gap in Elasticsearch capabilities."
Maryland-based business management consultancy Freedom Consulting Group (FCG) has acquired St. Louis, Missouri-based geospatial IT startup Geodata IT for an undisclosed amount. Geodata IT's press release states that "[t]he acquisition of Geodata IT enables FCG to expand their core capabilities while simultaneously allowing for greater growth in the flourishing St. Louis GIS market. The two entities will retain their respective names, operations, and organizational structures for the immediate term."
Canada-based media conglomerate Thomson Reuters has acquired Folsom, California-based machine learning company Pondera Solutions for an undisclosed amount, according to Government Technology. Pondera's tools are used to identify fraud, waste, and abuse in government-funded programs. Thomson Reuters spokeswoman Kara Pederson told Government Technology, "As we look out at the long term, we’ll have to figure out how it makes the most sense to combine our capabilities … but the exact road map for that is not ready to be shared."
Norwegian electrical equipment safety testing company Nemko Group has acquired cybersecurity assessment firm System Sikkerhet, which is also based in Norway, Help Net Security reports. System Sikkerhet’s CEO Lars Thoresen said, "We enthusiastically join Nemko with a similar customer-first style of business. Our combined services offerings will delight existing customers and attract new companies in need of comprehensive compliance solutions."
Investments and exits.
San Francisco-based online fraud prevention company Arkose Labs has secured $22 Million in a Series B round led by Microsoft's venture fund M12, with participation from existing investors PayPal and US Venture Partners (USVP). The company's press release says the funding "will go toward platform development, new hires and global expansion."
Singapore-based application and cloud security company Horangi closed a $20 million Series B round led by Provident Growth, with participation from Monk's Hill Ventures, Right Click Capital, and Genesis Alternative Ventures. Horangi says it will use the funding to support its "Southeast Asia expansion efforts focused on Indonesia and its enhancements to Warden, its cloud security product."
South Korean malware analysis firm SecuLetter has raised $8 million in a Series B funding round led by Riyadh Valley Company (RVC), Korea Development Bank (KDB), Korea Investment Partners (KIP), and UTC Investment. The company's press release explains, "With its recently-attracted investments, SecuLetter will be actively expanding its product lineup, developing more sophisticated products that incorporate AI-based malware detection and CDR (Content Disarm & Reconstruction), and strengthening its R&D capabilities."
The Intelligence and National Security Alliance (INSA) has appointed John Doyon as its Executive Vice President. Doyon was previously Chief Data Officer and Director of the National Counterterrorism Center's Office of Data Strategy & Innovation.
Jerry Bell announced that he was appointed VP and CISO of IBM Public Cloud. Bell was previously IBM's Director of Cyber Security Management.
AppOmni has hired Kathleen McKinnon as Director and Head of Customer Success, Brandon Conley as Chief Revenue Officer, and John Yun as Vice President of Marketing. McKinnon was previously a member of Salesforce's Innovation & Learning team and Security team, Conley was previously the VP WW Public Cloud Security Sales at Palo Alto Networks, and Yun previously "built the entire marketing organization and operations at Zingbox."
Illusive Networks has appointed Steve Katz to its board of directors. Katz is executive advisor of security and privacy at Deloitte, and has served as CISO for Citigroup and executive advisor to the head of technology at Kaiser Permanente.
Security companies in the news.
The Motley Fool predicts that, despite the current market uncertainty, Cisco Systems will probably profit in the long-run from widespread work-at-home policies brought about by the coronavirus pandemic. The company said its Webex video conferencing service saw a 22 percent spike in traffic in recent weeks. While Cisco is offering premium features of the service for free during the crisis, The Motley Fool notes that this allows companies "to become familiar with these types of solutions." Likewise, the New York Times says "when the economy does eventually improve, Big Tech could benefit from changes in consumer habits," while noting that the coming months will likely be rough on smaller companies and technology providers that depend on in-person interactions, such as Uber, Lyft, and Airbnb.
Other providers of remote working tools, particularly Zoom, are seeing their stock values rise, according to CNBC, and VPNpro says eight out of nine major VPN companies have "confirmed a significant increase in usage, sales, or both." VPNpro observes that based on Google Trends data and feedback from VPN providers, surges in VPN usage appear to be "following the coronavirus from country to country."
Numerous security firms, including Emsisoft, Coveware, Awake Security, and CynergisTek, are offering free ransomware assistance and other services to healthcare providers for the duration of the pandemic, Health IT Security reports.
Venture capital firm DataTribe found that early-stage investments in cybersecurity companies were on the decline well before the coronavirus took hold. DataTribe predicts that the pandemic will exacerbate this trend, but the firm is optimistic about the outlook for cybersecurity investments in the long-term.