After spinning out as a standalone safety enterprise from Intel earlier this 12 months, McAfee has made its first acquisition. The corporate has acquired Skyhigh Networks, a specialist in cloud safety, the businesses introduced immediately.
The monetary phrases of the deal haven’t been disclosed, however listed here are a number of information factors: Skyhigh had raised over $106 million in funding, in response to Crunchbase, most not too long ago a Sequence D spherical a 12 months in the past, with its buyers together with Sequoia, Greylock and Salesforce. PitchBook, in the meantime, places its most up-to-date funding spherical at $400 million, one marker for the potential worth of this deal.
The deal is an indication of the continuing pattern for consolidation within the safety trade, the place smaller gamers are coming collectively beneath bigger companies to supply extra safety providers beneath one roof. This is smart on a few ranges.
For one, the problem of cybersecurity has turn into one of the persistent out there immediately, with malicious hacking a nightmare not only for companies however people as an increasing number of of our private and not-so-personal info changing into digitised and shifting to the cloud, placing it within the attain of each criminals and damaging pranksters.
Within the case of Skyhigh, McAfee — whose legacy enterprise is in endpoint safety — is particularly buying the corporate for that cloud experience. Skyhigh CEO Rajiv Gupta will head McAfee’s cloud enterprise unit.
The opposite is the character of how safety providers is evolving: we’re seeing an enormous shift to using information analytics and machine studying and other forms of AI to have the ability to determine, monitor and cease cybercrime. Bringing collectively totally different providers that may use and enhance the larger information pool makes all of these providers stronger, probably.
“Skyhigh Networks had the foresight 5 years in the past to comprehend that cybersecurity for cloud environments couldn’t be an obstacle to, or afterthought of, cloud adoption,” Chris Younger, CEO of McAfee, mentioned in an announcement. “They pioneered a completely new product class referred to as cloud entry safety dealer (CASB) that analysts describe as one of many quickest rising areas of knowledge safety investments of the final 5 years – the place Skyhigh continues to innovate and lead. Skyhigh’s management in cloud safety, mixed with McAfee’s safety portfolio power, will set the corporate aside in serving to organizations function freely and securely to succeed in their full potential.”
It’s not clear if Skyhigh was worthwhile, and the place it stood on its funding, however this shall be coupled with extra funding into its enterprise by McAfee, which was valued at $four.2 billion on the time of its spinout from Intel in April.
“Changing into a part of McAfee is the best subsequent step in realizing Skyhigh Networks’ imaginative and prescient of not merely making the cloud safe, however making it essentially the most safe surroundings for enterprise,” Gupta mentioned in an announcement. “McAfee will present world scale to additional speed up Skyhigh’s development, with the mixed firm offering main applied sciences and options throughout cloud and endpoint safety – classes Skyhigh and McAfee respectively helped create, and the 2 architectural management factors for enterprise safety.”
Skyhigh Networks already has produces within the areas of SaaS, PaaS and IaaS and a variety of cloud-based safety providers round coverage management each for apps within the cloud and on premises. We must always anticipate to see extra of that now being marketed to McAfee’s present roster of shoppers.
The deal is predicted to shut pending regulatory approvals and different closing circumstances.
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