Rapid7 announced today after the closing bell that it will be acquiring DivvyCloud, a cloud security and governance startup for$ 145 million in cash and stock. With Divvy, the company moves more deeply into the cloud, something that Lee Weiner, chief innovation officer states the business has been working towards, even prior to the pandemic pushed that agenda.
Like any company taking a look at broadening its offering, it well balanced structure versus buying and chose that buying was the much better method to go. “DivvyCloud has a great platform that actually enables companies the flexibility to innovate as they relocate to the cloud in a manner that manages their compliance and security,” Weiner told TechCrunch.
CEO Corey Thomas says it’s not possible to negotiate right now without looking at the economic conditions due to the pandemic, however he states this was a relocation they felt comfy making.
“You need to really consider whatever that’s going on worldwide. I think we remain in a lucky position in that we have had the benefit of both growing in the previous couple years but also getting the business more effective,” Thomas stated.
He said that this acquisition fits in perfectly with what he’s been hearing from consumers about what they require today. “One area of brand-new tasks that is actually moving forward is how people are trying to determine how to digitize their operations in a world where they aren’t sure how quickly employees will be able to congregate and collaborate. Therefore from that context, focusing on the cloud and supporting our consumers’ journey to the cloud has actually become a much more essential priority for the organization,” he said.
Brian Johnson, CEO and co-founder at DivvyCloud states that is specifically what his business offers, and why it must suit well with the Rapid7 family.”We help customers attain quick innovation in the cloud while guaranteeing they remain secure, well governed and compliant,” he said. That takes a various playbook than when consumers were on prem, especially needing automation and real-time removal.
With DivvyCloud, Rapid 7 is getting a 7-year old business with 70 staff members and 54 consumers. It raised $27.5 million on an $80 million post-money valuation, according to PitchBook information. All of the employees will become part of the Rapid7 company when the deal closes, which is expected to take place a long time this quarter.
The companies state that as they come together, they will continue to support existing Divvy consumers, while working to incorporate it more deeply into the Rapid7 platform.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.