At a glance.
- Oracle wins TikTok deal with ByteDance, subject to US government approval.
- Nvidia plans to buy Arm for $40 billion.
- Former NSA director Keith Alexander joins Amazon's board of directors.
- Momentum Cyber's look at the cybersecurity sector.
Mergers and acquisitions.
Oracle has landed a deal with ByteDance to serve as "the trusted technology provider" for TikTok, although some details of the arrangement remain unclear. The Wall Street Journal says ByteDance will retain a majority stake in TikTok, with Oracle holding a significant minority interest. TikTok’s American operations will be incorporated as a US company. The proposed deal is still under review by US national security regulators.
US-based Nvidia plans to buy UK-based ARM Holdings from SoftBank for $40 billion, the BBC reports. CNBC explains that "investors believe that Nvidia could closely integrate Arm’s CPU technology with Nvidia’s specialty in graphics processors (GPU) to build a lead on the rest of the semiconductor industry." Reuters notes that the deal is opposed by many of Arm's customers, including Intel, Qualcomm, and Samsung, who compete with Nvidia.
Arlington, Virginia-based threat intelligence firm ThreatConnect has acquired Tysons Corner-based cyber risk quantification company Nehemiah Security. ThreatConnect will integrate Nehemiah's Risk Quantifier into its cybersecurity platform.
Atlanta-based software security company Secureworks will acquire Canadian vulnerability management company Delve Laboratories. Secureworks stated, "The Delve all-in-one solution, automating asset discovery, vulnerability scanning, contextual vulnerability prioritization and remediation planning, will be available for sale as part of Secureworks’ portfolio this quarter. Secureworks will also integrate Delve technology into the Red Cloak Platform™ and TDR application."
Arizona-based managed detection and response provider Avertium has acquired Texas-based managed security services provider 1440 Security. The company says the "acquisition enhances Avertium's extended detection and response (XDR) approach, and advanced threat management expertise within its managed security service offerings. It also adds a third CyberOps Center of Excellence to Avertium's existing two centers in Arizona and Tennessee. "
Investments and exits.
Massachusetts-based data analytics and SIEM company Devo Technology has raised $60 million in a Series D round led by Georgian, with participation from Bessemer Venture Partners and existing investor Insight Partners. The company has also appointed Marc van Zadelhoff, former COO of LogMeIn and manager of IBM Security, as its new CEO. Devo's current CEO Walter Scott will become chairman of the board. Additionally, Justin LaFayette from Georgian and Tom Schodorf will join Devo's board. The company says "the funding and executive moves will drive all aspects of the business to sustain an aggressive pace of growth and accelerate the company’s expanding leadership in the security analytics market."
New York-based healthcare IoT security company Medigate has secured $30 million in a Series B round led by Partech, with participation from Maor Investments and existing investors YL Ventures, US Venture Partners (USVP), and Blumberg Capital.
Mountain View, California-based container and Kubernetes security company StackRox has raised $26.5 million in a funding round led by Menlo Ventures, with participation from Highland Capital Partners, Hewlett-Packard Enterprise, and existing investors Sequoia Capital and Redpoint Ventures. StackRox stated that it will use the funding "to accelerate growth, expand in key geographies such as EMEA, and support R&D efforts to continue its industry-leading innovation in Kubernetes-native container security and compliance. As part of this investment, Venky Ganesan, partner, Menlo Ventures, has joined the StackRox board."
Texas-based enterprise data catalog company data.world has raised $26 million in a venture capital funding round led by Tech Pioneers Fund, with participation from Breyer Capital, Prologis Ventures, and Alumni Ventures Group, and existing investors Shasta Ventures, OurCrowd, and Workday Ventures. Angel investors Arthur Patterson, Lincoln Brown, and Cotter Cunningham also participated. Scott Booth, chairman of Tech Pioneers Fund, and Sally Jenkins, chief marketing officer at Elastic, will join the company's board of directors. Data.world says the funding will enable it "to accelerate its agile data governance initiatives, scale to meet increased market demand for its enterprise platform, and continue to deliver its innovative brand of product and customer service."
Israeli automated penetration testing company Pcysys (Proactive Cyber Systems) has raised $25 million in a Series B round led by Insight Partners, with participation from existing investors Blackstone and Awz Ventures, Israel Defense reports. Pcysys says it will use the funding "to expand the company’s sales and delivery teams in North America, EMEA, and Asia Pacific as well as continue the development of its technology."
San Francisco-based open-source SIEM provider Panther Labs has raised $15 million in a Series A round led by Lightspeed Venture Partners, with participation from S28 Capital, Innovation Endeavors, and Fathom Capital. Gaurav Gupta, a partner at Lightspeed, will join Panther's board of directors. The company says it will use the funding to "invest in key functions including sales, marketing, security, and engineering, with additional features coming to make its platform smarter, more portable, and easier to use."
Detroit-based endpoint security and anti-phishing startup AaDya Security has raised $2.7 million in seed funding from Firebrand Ventures, 645 Ventures, and Next Coast Ventures. The company is focused on small and medium-sized businesses, and says it will use the funding to hire additional employees and enhance its technology.
Former NSA director General (retired) Keith Alexander has joined Amazon's board of directors, and will serve on the company's audit committee, the Verge reports. Alexander is currently co-CEO of IronNet Cybersecurity.
BlackCloak has hired Daniel Floyd as its first Chief Information Security Officer and Christine Schaefer as Head of Sales & Marketing. Floyd previously served as CISO for LSQ, while Schaefer most recently served as Chief Marketing Officer for ThreatConnect.
Securonix has appointed Brett Bowman as Chief Financial Officer and Dilshan Ratnayake as Chief People Officer. Bowman most recently served as CFO of Main Street Hub, which was acquired by GoDaddy, while Ratnayake previously served as Head of Human Resources at Sabre Corporation.
Anomali has hired Mark Alba as Chief Product Officer, Mark Boullie as Chief Revenue Officer, and Dan Maier as Chief Marketing Officer. Alba has previously worked for Check Point, Security Focus, Symantec, and Hewlett Packard Enterprise; Boullie previously served as Chief Revenue Officer at JASK (acquired by Sumo Logic); Maier most recently served as VP of Marketing at Zingbox.
SparkCognition has added Jim Moffatt and Ron Sugar to its advisory board, AiThority reports. Moffatt is the former chairman and CEO of Deloitte Consulting, while Sugar is the former chairman and CEO of Northrop Grumman and current chairman of Uber.
Radware has appointed Stanley B. Stern and Naama Zeldis as independent directors of its board of directors. Stern currently serves as chairman of the board at AudioCodes and as a board member at Ormat Technologies. Zeldis is currently CEO of Aquarius-Spectrum and serves as a board member at Orbit Technologies.
Redscan has hired Mark Doughty as CFO. Doughty previously worked for MHR and The FD Centre.
Companies in the news.
Momentum Cyber late last week released its Cybersecurity Market Review for the first half of 2020. It tells what Momentum described to us as a "tale of two quarters," with considerable growth in the first quarter but pandemic-driven retrenchment in the second. On balance, Momentum finds that cybersecurity is "virus-resistant," and better placed than some other sectors to whether the COVID-19 emergency. Cyber is too fully embedded not just in commerce, but in daily life, to be affected in the long-term by the pandemic. Slowing activity signals pent-up demand: a shift in corporate priorities during the pandemic represents opportunity. When we asked Momentum if innovation simply needed time to catch up, they said. “While innovation does need to catch-up in certain areas more broadly, many of these sectors’ leaders have been driving innovation and the pandemic was the tipping point that has accelerated their growth.” There are already signs of improving demand and fresh investor interest. The report touches on some interesting trends in acquisitions and investment. Companies who are acquiring have been buying identity and access management firms, whereas investors, while also interested in identity and access management, are putting their money on risk and compliance and on data security. Read the CyberWire's full summary of the report here.
Las Vegas-based fraud prevention startup NS8 has laid off hundreds of employees as the SEC investigates the company for alleged fraud, Forbes reports. NS8's CEO Adam Rogas has left the company.
Coalition has published a report on cyber insurance claims in the first half of 2020 and found that the frequency and severity of claims have increased, largely due to targeted ransomware attacks. Coalition says ransomware incidents, particularly those involving newer and more nefarious strains like Maze, are "more severe than other reported cyber insurance incidents by a factor of 2.5x."
CenturyLink has changed its name to "Lumen Technologies," and is now traded on the NYSE as "LUMN," the Motley Fool reports.
Where business is done.
San Francisco-based network intelligence company Sandvine announced that it's cancelled a deal with the government of Belarus after determining that Minsk had used the company's products to cut off the country's Internet access during its election last month, Bloomberg reports. Sandvine will no longer provide software updates or technical support for its products used by the Belarusian government, although the products will still be functional in the short term. The company asserts that the government added custom code to its technology "to thwart the free flow of information during the Belarus election," stating, "This is a human rights violation and it has triggered the automatic termination of our end user license agreement. Sandvine takes human rights abuses very seriously. We also abhor the use of technology to suppress the free flow of information resulting in human rights violations."