Rapid7 has acquired threat intelligence and remediation company IntSights Cyber Intelligence for $335 million in cash and stock. Foros acted as financial advisor to Rapid7 on the deal.
This is M&A deal 428 that MSSP Alert and ChannelE2E have covered so far in 2020. See the full M&A deal list here.
Rapid7 partners and customers will gain "a unified view into threats, attack surface monitoring, relevant insights, and proactive threat mitigation for organizations of any size or level of security maturity," the buyer says. This deal also enhances Rapid7’s eXtended detection and response (XDR) platform, which is know as InsightIDR.
Rapid7 Acquires IntSights: Company Backgrounds
IntSights Cyber was a venture-backed startup. The company in November 2019 raised $30 million in series D funding led by Qumra Capital. Total funding at the time was $70 million.
Key investors also included Wipro, the India-based IT consulting and software development giant. Wipro sold its entire IntSights Cyber stake to Rapid7 for $19.17 million -- which is a 4.5X return vs. the $4.21 million that Wipro invested in IntSights in 2016, SeekingAlpha reports.
Rapid7, meanwhile, remains in growth mode. The company's ARR (annualized recurring revenue) will be $489 million in Q2 of 2021, up 29 percent year-over-year, the company estimated today. Full Q2 2021 financial results will be announced on August 4, 2021.
In a prepared statement about the deal, Rapid7 CEO Corey Thomas said:
“Cyber security is a lopsided battle today and the odds consistently favor attackers. Both IntSights and Rapid7 have a shared belief that organizations will succeed only when they have a unified view of internal and external threats, complete with contextualized intelligence and automated threat mitigation which will allow security teams to focus on the most critical threats. We look forward to working with IntSights to make this vision a reality for our customers.”
Added Richard Perkett, senior vice president of detection and response at Rapid7:
"There's no shortage of threat intelligence information available today, but much of it lacks context, creating too much alert noise and additional work for already overburdened security teams. By integrating IntSights’ external threat intelligence capabilities into Rapid7's XDR solution, InsightIDR, we expect to provide security teams with expanded visibility and detections of internal and external threats across their traditional and modern environments—enabling them to quickly pivot into investigations, threat hunting and containment automation all within a unified experience."
Noted Guy Nizan, co-founder and CEO at IntSights:
“We founded IntSights to make threat intelligence instantly accessible and actionable for organizations of any type or size. We are excited to join Rapid7 to continue this mission and to bring our threat intelligence capabilities to even more customers.”
Rapid7 M&A Experience
Rapid7 has been a steady buyer in the cybersecurity market. Previous acquisitions include:
- February 2021: Alcide.IO, a Kubernetes security company.
- April 2020: DivvyCloud for Cloud Security Posture Management (CSPM) across Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, Alibaba & Kubernetes.
- April 2019: NetFort, a network monitoring & visibility solution firm.
