At a glance.
- Palo Alto Networks acquires The Crypsis Group.
- Sumo Logic files for a $100 million IPO.
- ReliaQuest receives $300 million in growth financing.
- Palantir files its S-1.
Mergers and acquisitions.
Palo Alto Networks will acquire Virginia-headquartered incident response and risk management firm The Crypsis Group for $265 million. The company stated, "The addition of The Crypsis Group's security consulting and forensics capabilities will strengthen Cortex XDR's ability to collect rich security telemetry, manage breaches and initiate rapid response actions. The Crypsis Group's experts and insights will also fuel the Cortex XDR platform with a continuous feedback loop between incident response engagements and product research teams to prevent future cyberattacks. The company expects to integrate The Crypsis Group's processes and technology into Cortex XDR to further enhance its ability to safeguard organizations at every stage of the security lifecycle."
New Jersey-based Konica Minolta Business Solutions USA. (the US division of Japanese technology company Konica Minolta) has acquired Missouri-based cybersecurity consultancy Depth Security. Depth Security will be added to Konica Minolta's IT services division All Covered. The company stated, "The Depth Security team will round-out All Covered’s current defensive offering to include offensive capabilities to support market share growth."
Texas-based engineering and procurement company KBR has agreed to acquire Virginia-based space, intelligence and cybersecurity technology company Centauri from Arlington Capital Partners for "approximately $800 million (net of tax benefits) in cash." KBR says the acquisition "significantly expands its military space and intelligence businesses and builds on its already strong cybersecurity and missile defense solutions."
Madrid-based ElevenPaths (Telefónica Tech's cybersecurity subsidiary) has acquired Valencia-based governance, risk, and compliance (GRC) firm Govertis. Telefónica Tech says the acquisition is part of its "organic and inorganic growth strategy with the aim of reinforcing its leadership in cybersecurity in the countries in which Telefónica operates and in new markets." Govertis has a "network of offices throughout Spain and Latin America, especially in Ecuador and Peru."
Minnesota-based IT services provider ConvergeOne has acquired Washington-based contact center company Altivon. ConvergeOne's CEO John A. McKenna Jr. stated, "The addition of the Altivon team is an important step in our strategy to develop and expand customer relationships by providing comprehensive collaboration solutions with cloud, managed and professional services."
Dublin-based IT and security management platform provider Kaseya has acquired Virginia-based automated phishing defense company Graphus. Graphus's platform has been integrated into Kaseya's IT Complete offering.
Investments and exits.
Florida-based cybersecurity intelligence platform provider ReliaQuest has raised $300 million in a growth financing round led by KKR, with participation from Ten Eleven Ventures and ReliaQuest founder and CEO Brian Murphy. The company says the investment "will support ReliaQuest in accelerating the company's growth initiatives, including international expansion and platform development."
Berlin- and San Francisco-based "pentest-as-a-service" firm Cobalt has raised $29 million in a Series B round led by Highland Europe, with participation from angel investors "Scott Belsky (chief product officer at Adobe), Soren Abildgaard (executive VP of engineering at Zendesk), Chris Eng (Chief Research Officer at Veracode), Gary Swart (former CEO of oDesk), Elizabeth Tse (former senior VP of Operations at Upwork), Greg Nicastro (former executive VP of Product at Veracode and former Chief Product Officer at CloudHealth Technologies) and existing angel investor Gerhard Eschelbeck (former VP of security and privacy engineering at Google)." The company says the funding "will go towards expanding global usage and continuing development of the Cobalt platform."
Virginia-based network defense and malware detection firm AffirmLogic has raised $25 million in an equity financing round led by "a private investment group focused on companies with innovative technology and high growth potential."
Maryland-based managed detection and response provider Blackpoint Cyber has raised an undisclosed amount in a Series B round. The company also announced that it's adding John N. Stewart, Cisco's former Senior Vice President and Chief Security and Trust Officer at Cisco, to its board of directors.
Palo Alto, California-based AI performance monitoring company Fiddler has received an undisclosed amount in strategic funding from the Amazon Alexa Fund. The company said, "Fiddler and the Alexa Fund will collaborate to advance actionable insights in AI, giving businesses complete and continuous visibility into their production AI systems to ensure high-performing, responsible, and transparent AI solutions."
(ISC)² has appointed Clar Rosso as its new CEO, effective October 1st. Rosso currently serves as Executive Vice President of Engagement and Learning Innovation at the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).
Thycotic has appointed Andrew McAllister Vice President for APAC, Kris Hansen as the APAC Strategic Alliance Director, and Sam Aylett as the Director of Marketing for APAC. McAllister was previously Thycotic's A/NZ Regional Director and Hansen was Thycotic's Director of International MSP Sales. Aylett was most recently Global Head of Business Marketing at Iress.
Corelight has appointed Brian Dye as its new CEO and Michele Bettencourt as Executive Chair of the Board. Dye was previously Corelight's Chief Product Officer, while Bettencourt is the former CEO of Imperva. Corelight's co-founder and former CEO Greg Bell will now be the company's Chief Strategy Officer.
The International Association of Certified ISAOs (IACI) has selected Steven Bradley as the Director of the Cognitive Security Intelligence Center. Bradley was most recently a Strategic Advisor of Cyber Security & Data Analytics at the Pacific Northwest National Laboratory.
Science Applications International Corp. (SAIC) has hired Nyla Beth Gawel as Senior Vice President of Strategy. Gawel was most recently the Director of Public Sector Strategy at Verizon Business Group.
Safe-T has added Larry D. Johnson and Rami Efrati to its advisory committee. Johnson is the former CEO and board member at CyberSponse Inc., while Efrati is the former Head of the Civilian Division of the Israel National Cyber Bureau in the Prime Minister's Office.
Companies in the news.
Palantir submitted its S-1 filing yesterday to take the company public. The company revealed that it had a net loss of $580 million in 2019 and similar losses in 2018. The New York Times notes that Palantir is "the latest in a string of tech companies to offer shares on Wall Street well before turning a profit." As part of its growth strategy, the company says it's seeking to grow its customer base in the private sector, while becoming "the default operating system for data across the U.S. government."
In an introductory note to the S-1, CEO Alex Karp defended his company's positions and criticized its Silicon Valley peers, shedding more light on the company's decision to move its headquarters to Denver, Colorado:
"We embrace the complexity that comes from working in areas where the stakes are often very high and the choices may be imperfect. The more fundamental issue is where authority to resolve such questions — to decide how technology may be used and by whom — should reside. Our society has effectively outsourced the building of software that makes our world possible to a small group of engineers in an isolated corner of the country. The question is whether we also want to outsource the adjudication of some of the most consequential moral and philosophical questions of our time. The engineering elite of Silicon Valley may know more than most about building software. But they do not know more about how society should be organized or what justice requires.
"Our company was founded in Silicon Valley. But we seem to share fewer and fewer of the technology sector’s values and commitments. From the start, we have repeatedly turned down opportunities to sell, collect, or mine data. Other technology companies, including some of the largest in the world, have built their entire businesses on doing just that. Software projects with our nation’s defense and intelligence agencies, whose missions are to keep us safe, have become controversial, while companies built on advertising dollars are commonplace. For many consumer internet companies, our thoughts and inclinations, behaviors and browsing habits, are the product for sale. The slogans and marketing of many of the Valley’s largest technology firms attempt to obscure this simple fact.
"The world’s largest consumer internet companies have never had greater access to the most intimate aspects of our lives. And the advance of their technologies has outpaced the development of the forms of political control that are capable of governing their use. The bargain between the public and the technology sector has for the most part been consensual, in that the value of the products and services available seemed to outweigh the invasions of privacy that enabled their rise. Americans will remain tolerant of the idiosyncrasies and excesses of the Valley only to the extent that technology companies are building something substantial that serves the public interest. The corporate form itself — that is, the privilege to engage in private enterprise — is a product of the state and would not exist without it. Our software is used to target terrorists and to keep soldiers safe. If we are going to ask someone to put themselves in harm’s way, we believe that we have a duty to give them what they need to do their job. We have chosen sides, and we know that our partners value our commitment. We stand by them when it is convenient, and when it is not."