UPDATED 21:18 EDT / MARCH 05 2019

SECURITY

NTT acquires application security provider WhiteHat Security

NTT Security Corp., the security arm of Japanese telco giant Nippon Telegraph and Telephone Corp. today said it will acquire application security provider WhiteHat Security Inc. for an undisclosed sum.

Founded in 2001 by former Yahoo information security officer Jeremiah Grossman, WhiteHat provides solutions for website security. With a cloud-based service, the company offers a vulnerability management platform along with security intelligence services that provide actionable insights for customers.

The company’s main product, WhiteHat Sentinel (pictured), is said to manage more than 11,000 websites, including those from top e-commerce, finance and healthcare companies. Customers include Dell Inc., Akamai Technologies Inc., NetApp Inc., Pitney Bowes Ltd. and various others.

WhiteHat Security had raised $50.6 million, according to Crunchbase, with its last round of funding, $31 million, coming from Investor Growth Capital and JMI Equity back in 2013.

Given its relatively old age — 18 years is a long time for a venture-backed startup to remain private and independent — WhiteHat has long been subject to rumors. In 2016, Pitchbook claimed that WhiteHat was on the verge of an exit and claimed that it had a book valuation of $191 million.

The same year, Chief Executive Officer Craig Hinkley told IDG in an interview that “all options remain open for WhiteHat, from acquiring or being acquired to raising more money and chasing an IPO.”

Under the deal, WhiteHat will continue to operate as an independent, wholly owned subsidiary of NTT Security Corp. “NTT Security and WhiteHat will together address enterprise security needs that range from IT infrastructure to critical business applications, covering the full lifecycle of digital transformation,” the spokesperson for WhiteHat told SiliconANGLE.

While operating as a standalone company, WhiteHat services will be made available to NTT Security’s existing customers. “By bringing WhiteHat Security into our portfolio we are now well positioned to deliver on our vision of securing a smart and connected society by providing comprehensive security solutions for enterprises undergoing digital transformation,” Katsumi Nakata, CEO of NTT Security, said in a statement.

The deal is expected to close later this year.

Image: WhiteHat Security

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