Verizon Communications has acquired ProtectWise, a provider of cloud-based Network Detection and Response (NDR) cybersecurity services, the companies have confirmed. Financial terms were not disclosed.
ProtectWise, founded in 2013, originally positioned itself as a provider of a Cloud Network DVR -- a "virtual camera in the cloud that records everything on the network." The company, a close Amazon Web Services (AWS) partner, has since branded its intellectual property as ProtectWise Grid -- a platform for managing and securing enterprise, cloud, hybrid, and industrial control system (ICS) environments.
ProtectWise emerged from stealth mode in 2015 with more than $17 million in venture funding, and the company ultimately raised roughly $67 million as of January 2017.
ProtectWise Partner Strategy
ProtectWise has been a partner-centric company since its birth -- rapidly building strategic alliances, integrations and channel partner sales engagements. Example relationships include the following companies...
Strategic alliances and integrations with such businesses as:
Channel partnerships: A ProtectWise pure-channel sales model emerged in 2016.
- Initial tier-1 anchor partners included Fishtech, GuidePoint Security and Optiv Security.
- Sep2 surfaced as a key European channel partner in 2017.
- Progress Distribution engaged with the company shortly thereafter.
ProtectWise Partner Plans - Updated Sunday, March 3, 2:00 p.m. ET: MSSP Alert reached out to Verizon Executive VP Alex Schlager to see if the telecom giant plans to maintain ProtectWise's partner program. His response: Yes, Verizon does plan to keep ProtectWise's channel partner program, though the telecom giant is evaluating partner levels within the program, and the next immediate step is to "enable ProtectWise as a Verizon product/service as the combination with our network services will allow our customers to drive their security posture from the network upwards."
Verizon Acquires ProtectWise: Executive Perspectives
Describing the acquisition in a prepared statement, Verizon's Schlager said:
"Integrating ProtectWise's capabilities with Verizon's leading global network services further enhances our ability to detect and respond to security threats. In addition, as we rapidly expand our 5G footprint, increasing our capacity and capabilities in network detection and response will secure our customers as they adapt and expand with the next generation of connectivity."
Added ProtectWise CEO and Co-Founder Scott Chasin:
“ProtectWise has dedicated the last five years to building a next-generation Network Detection and Response platform that’s been recognized as one of the leading technologies in the cybersecurity industry. Our technology and the outstanding team behind it will be great assets to Verizon as the company expands its enterprise security offerings. We look forward to becoming a part of Verizon to deliver immediate value to our customers, partners and team based on the company’s strong security market presence and global reach.”
DBO Partners acted as the financial advisor to ProtectWise on the deal.
Telecom Companies Acquire Cybersecurity Businesses
Verizon and rival AT&T have been active on the cybersecurity M&A front.
Verizon in early 2018 acquired Niddel, a security startup focused on machine learning to autonomously ferret out contaminated systems inside an organization. The telecom giant has also introduced various cloud security, assessment and partner program updates in the past year.
Meanwhile AT&T acquired AlienVault in August 2018. Fast forward to present day, and a new AT&T Cybersecurity division now contains the former AlienVault, AT&T Cybersecurity Consulting and AT&T Managed Security Services assets.
We'll be watching for more AT&T Cybersecurity, Verizon and ProtectWise updates at this week's RSA Conference in San Francisco.
