Identity and access management provider SecureAuth Corp. has announced plans to merge with cybersecurity firm Core Security SDI Corp., as it bids to become a major player in the world of information security.

In addition, the company said today that it has just landed a $200 million funding round led by the private equity firm K1 Investment Management, with participation from existing investor Toba Capital.

At first glance, the two companies seem to be a perfect match for one another. SecureAuth is a provider of what it calls “adaptive access controls” that include multi-factor authentication and single sign-on, which are designed to eliminate the threat of identity theft. As for Core Security, it specializes in network security and vulnerability management, providing real-time insights to help manage security risks as they emerge.

The thinking behind the merger, which is still pending U.S. government approval, is fairly straightforward. SecureAuth said the newly merged company will be able to provide a much more comprehensive security offering to its customers that combines its adaptive access controls with Core Security’s insights for better overall protection.

The companies believe there’s a clear need for a platform that combines these two unique aspects of cybersecurity. They note that most enterprises’ information technology environments continue to be mired in complexity, with outdated, granular security stacks that provide very little visibility about existential security threats. As evidence, they cite statistics showing that the number of data breaches around the world rose by 40 percent from 2015 to 2016.

“SecureAuth is merging with Core to create one of the industry’s only security companies that incorporates identity with network, endpoint and vulnerability detection,” Jeff Nolan, chief marketing officer at SecureAuth, told SiliconANGLE via email. “This is important because existing siloed views of network and endpoints have not been able to prevent attacks that are rooted in the misuse of a credentials.”

Nolan explained that the merger comes after SecureAuth was acquired by K1 earlier this year. Now, SecureAuth is now effectively acquiring Core Security, and says the newly combined firm will boast more than 1,600 customers and 360 employees, with an annual run rate exceeding $95 million. To get the ball rolling, K1 is also injecting $200 million in fresh capital into the company alongside Toba Capital to fuel its initial growth and expansion.

K1 and SecureAuth aren’t the only ones trying to roll up a bunch of security services into a more comprehensive offering. Last October, a startup called StackPath LLC announced the launch of an ambitious internet security-as-a-service software platform that it claims will one day be able to handle every kind of cyberthreat hackers can throw at it. StackPath’s offering is still in its infancy, however, as its Chief Executive Officer Lance Crosby told SiliconANGLE that the plan is to build up the platform’s capabilities slowly over a number of years, mainly through acquisitions.

Image: SecureAuth