UPDATED 23:49 EST / APRIL 28 2020

SECURITY

Rapid7 acquires cybersecurity firm DivvyCloud for $145M

Security operations firm Rapid7 Inc. today said it has agreed to acquire cybersecurity firm DivvyCloud Corp. for $145 million in cash and stock.

Founded in 2013, DivvyCloud offers a cybersecurity automation platform for the protection of cloud and container environments. The company’s platform protects against misconfigurations, policy violations, threats and identity and access management issues.

DivvyCloud’s platform is designed to provide deep visibility, combined with automated prevention and real-time remediation of risk to deliver continuous security and compliance for cloud environments. Support is provided for Amazon Web Services, Microsoft Azure, Google Cloud Platform, Alibaba Cloud and the open-source software container manager Kubernetes.

DivvyCloud had raised $28.9 million in venture capital funding from investors including RTP Ventures, Providence Strategic Growth, Mission OG, Discovery and New Dominion Angels.

“Security teams are constantly challenged with understanding and effectively managing the risk and security for cloud environments at DevOps speeds,” Lee Weiner, chief innovation officer at Rapid7, said in a statement. “DivvyCloud’s technology, team and market leadership in the cloud security space will enable Rapid7 to better serve its customers’ needs by helping them innovate more securely, and provide a robust set of compliance and remediation paths for those with modern cloud infrastructure.”

The acquisition of DivvyCloud comes five years after Rapid7 went public. The company floated in July 2015 and found a willing investors, popping more than 50% on its first day of trading. Floating at $16 per share, Rapid7 dropped as low as $10.99 per share in the year after it went public but has traded as high as $65.19 in July of last year. As of the close of trading Tuesday, Rapid7 shares were sitting at $46.94.

The acquisition is expected to close in the second quarter subject to customary closing conditions.

Image: TheDigitalArtist/Pixabay

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