“They Believe in ‘Not Being an Asshole'”

DivvyCloud’s buyers include things like Spotify and Pizza Hut

Protection knowledge supplier Rapid7 has agreed to get cloud stability and governance specialist DivvyCloud for $a hundred forty five million, in what it deems a “highly strategic, major step into the cloud”.

The acquisition, to be paid out in income and stock, is envisioned to shut in Q2, Nasdaq-mentioned Rapid7 stated. The buyout represents the Boston-based SIEM provider’s sixth acquisition in 5 a long time.

The offer arrives as Gartner claims that it expects $250 billion of paying out on community cloud companies in 2020, with eighty p.c of people utilizing two-moreover clouds.

DivvyCloud, based in Arlington, Virginia, specialises in protecting cloud and container environments from misconfigurations and plan violations. Its buyers include things like Spotify and Pizza Hut. It offers stability help for AWS, Azure, GCP, Alibaba Cloud and Kubernetes.

Its CEO Brian Johnson stated the tactic was recognized owing to equally technological and cultural alignment. As he place it: “Rapid7 invests in enthusiasm, possession, and to place it bluntly, ‘not staying an asshole’”.

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Nasdaq-mentioned Rapid7 is a SIEM supplier with above nine,000 buyers. It will pay $128.three million in income at closing, $seven.4 million of deferred income payments and $nine.three million in stock. DivvyCloud co-founders Brian Johnson and Chris DeRamus have agreed to be part of Rapid7.

The acquisition is a bullish go in troubled occasions: it arrived as Rapid7 opened a new three-year revolving credit facility that gives borrowing capability up to $30 million, expandable to $70 million. It also introduced a prepared non-public placement of $200 million of convertible senior notes owing 2025.

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“Gartner forecasts CSPM [cloud stability posture administration] to increase 20 p.c in 2021, faster than any other segment” Rapid7 stated of the announcement, including: “Support for many cloud environments will be a critical differentiator”.

CEO Corey Thomas stated: “We have been incredibly amazed with the DivvyCloud team and its technologies for some time… [their] platform will be an crucial element of our giving, providing buyers a substantially further, extensive perspective into their cloud stability posture”.

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