At a glance.
- Northrop Grumman will sell its Federal IT business for $3.4 billion.
- NortonLifeLock acquires Avira.
- Dragos secures $110 million in Series C funding.
Mergers and acquisitions.
Northrop Grumman is selling its Federal IT and mission support business to Veritas Capital for $3.4 billion. The private equity firm plans to combine the acquired business with Peraton, a Veritas portfolio company formed from the government IT business of Harris Corporation. Northrop Grumman's press release states that the company "expects to use the sale proceeds primarily for share repurchases, to offset dilution from the transaction, and for debt retirement." Peraton's president and CEO Stu Shea stated, "Our differentiated, complementary solutions and deep relationships with our respective customer bases give us the scale and resources to continue to address the evolving needs of government customers. The transaction will also expand our presence in both the federal civil and health marketplaces while continuing to add to our capabilities in the mission-critical IT domain."
Sunnyvale, California-based Fortinet has acquired Panopta, an IT operations management provider headquartered in Chicago, ARN reports. According to Zacks, "Fortinet's Security Fabric will be combined with Panopta's SaaS-based Hybrid scalable network monitoring and diagnostics platform. This will enable Fortinet to provide a comprehensive network and security operations management solution to its customers. Additionally, it will facilitate enhancements in the enterprise’s hybrid network infrastructure security and performance, powered by Fortinet's security solutions."
Sunnyvale-based Juniper Networks will acquire Menlo Park-headquartered data center network automation company Apstra. Juniper's CEO Rami Rahim stated, "Adding Apstra's intent-based networking and automated closed loop assurance advances our vision to transform data center operations. With the combination of Juniper and Apstra, customers get the best infrastructure and fabric management with integrated design, deployment and automated root cause identification and remediation to satisfy any Data Center environment."
Mountain View, California-headquartered NortonLifeLock will acquire German antivirus company Avira from London-based Investcorp for $360 million. Investcorp managing director Gilbert Kamieniecky stated, "We believe this transaction reflects our ability to quickly execute an ambitious organic and inorganic growth strategy alongside a Company's management team. The opportunity to combine Avira with NortonLifeLock was too compelling to ignore, for the organization and we wish the company the best as it builds a strong European footprint for the combined entity."
Massachusetts-based single-sign-on provider Imprivata has acquired Florida-headquartered analytics and insider threat detection company FairWarning. Imprivata stated, "The combination of Imprivata and FairWarning solutions provide customers with a single Digital Identity platform that integrates role-based access controls, robust identity governance, and critical data privacy compliance."
Minneapolis-based penetration testing company NetSPI has acquired Silent Break Security, a pentesting firm based in Utah. The company stated, "Through this acquisition, NetSPI will broaden its footprint to create a complete package for offensive cyber security and attack surface management. With the integration of Silent Break Security's manual testing team, along with its proprietary software platforms and toolsets, NetSPI will improve its ability to scale up vulnerability management programs to meet client needs." Silent Break Security's founder and CEO Brady Bloxham will become NetSPI's Chief Technology Officer.
Investments and exits.
Maryland-based industrial cybersecurity company Dragos has secured $110 million in a Series C round co-led by National Grid Partners and Koch Disruptive Technologies, with participation from Saudi Aramco Energy Ventures (SAEV), Hewlett Packard Enterprise, and existing investors AllegisCyber, Canaan, DataTribe, Energy Impact Partners, and Schweitzer Engineering Labs. Dragos's co-founder and CEO Rob Lee said the investment "will enable us to fully meet this moment for our customers by advancing the innovative technology at the center of our Dragos Platform, expanding our global footprint, and continuing to recruit the world’s most elite team of ICS/OT cybersecurity experts."
New York-based passwordless authentication provider Beyond Identity has raised $75 million in a Series B round led by New Enterprise Associates (NEA), with participation from Jim Clark and Koch Disruptive Technologies, VentureBeat reports. The company will use the funding "to fuel further innovation of its industry-leading, advanced passwordless identity platform and to build a global footprint, including the acceleration of distribution channels, OEM partners, and international sales and support."
Los Angeles-based cloud security provider Orca Security has raised $55 million in a Series B round led by ICONIQ Growth, with participation from existing investors GGV Capital, YL Ventures, and Silicon Valley CISO Investments. Orca stated that the funding will be used "further [expand] its cloud security and compliance capabilities. By the end of 2021, Orca Security plans to have nearly tripled its R&D team since its A round in May of 2020. It is also boosting its sales team to nearly 30 people to meet global product and customer demand. The company also plans to open new sales offices in the UK and Australia to serve the European and APAC markets."
Mountain View-headquartered cyber insurance company At-Bay has raised $34 million in a Series C round led by Qumra Capital, with participation from M12 and existing investors Acrew Capital, Khosla Ventures, Lightspeed Venture Partners, and Munich Re Ventures, TechCrunch reports. TechCrunch says the company plans to use the funding "to grow its team and launch new products, while improving its automated underwriting platform that allows companies to get instant cyber insurance quotes."
Palo Alto, California-based API security provider Salt Security has raised $30 million in a Series B round led by Sequoia Capital, with participation from existing investors Tenaya Capital, S Capital VC, and Y Combinator. Salt says the funding "funding will enable the company to accelerate its business in 2021 more rapidly, with a focus on investing in product development, sales and marketing, and customer acquisition."
London-headquartered file-based threat detection company Glasswall has raised £18 million (US$24 million) in equity capital from "IPGL, Lord Spencer's private investment group, and a number of other high net worth investors including Lord Rose, Chairman of Ocado, Lance Uggla, Chairman and CEO of IHS Markit, and Andy Bell, founder and CEO of AJ Bell." Glasswall will use the funds to advance its "next stage of growth with a focus on product development, engineering, sales and marketing."
Palo Alto-based customer data privacy vault provider Skyflow has raised $17.5 million in a Series A round led by Canvas Ventures, with participation from existing investor Foundation Capital. Skyflow plans to use the funding to "[i]nvest aggressively to build out its sales and marketing organization," "[e]xpand its product portfolio with vertical-specific vaults for finance, health and B2C companies," and "[h]ire engineering and operations teams to serve the needs of a growing list of customers."
BetaKit reports that Montreal- and San Diego-based managed detection and response provider GoSecure has raised an additional $14 million in an oversubscribed Series E round led by W Investments Group, with guidance from Yaletown Partners (which led GoSecure's initial $21 million Series E round in June 2020). The investment brings the total Series E funding to $35 million.
Marshall, Virginia-based identity and authentication company CySecure has received an undisclosed amount in seed funding from the Center for Innovative Technology (CIT), a nonprofit based in Richmond, Virginia. The company's press release stated, "CySecure successfully completed MACH37’s 90-day program, designed to accelerate a startup’s path to a sustainable business model. CySecure has made significant progress towards launching the general availability of their product and will use this investment for product development."
Allegion has named Tim Eckersley as Senior Vice President of Allegion International, a new business unit that will be established on January 1st, 2021 as a consolidation of the company's EMEA and Asia-Pacific units. Eckersley currently serves as Senior Vice President of Allegion's Americas region.
Salient Systems has added Tom Bogan and Lane Bess to its board of directors. Bogan currently serves as Vice Chairman of Workday. Bess is the founder of Bess Ventures and Advisory, and has previously served as COO at Zscaler and CEO of Palo Alto Networks.