Rapid 7, a U.S.-based cybersecurity and compliance solutions provider, is reportedly acquiring Alcide.IO, a security solutions provider, for $50 million. Under the recent agreement, Alcide.IO, along with its 30 employees, will operate as the Israeli development center of Rapid 7. As per a stock market index, the U.S.-based cyber company has previously been traded at $4.5 billion.
For the record, Alcide.IO has secured $12 million from investors namely CE Ventures, Elron, and Intel Capital to date. While Rapid 7 has recorded $105 million in revenue in the Q4 of 2020 and employs 1,250 people.
Founded in 2016 and backed by Elron Electronic Industries, Alcide has been catering to the needs of security, DevOps, and engineering teams by developing a cloud security platform that offers simplified tools to effectively manage and safeguard data centers against cyber-attacks.
The company’s firewall also helps security teams in defining, applying, and enforcing data protection policies on cloud services to continuously monitor and assess risks.
According to Rapid 7’s CEO & Chairman, Corey Thomas, the company showed excitement towards partnering with Alcide and appreciated the technological expertise of its team. With Alcide, it is looking forward to driving innovation and business growth by delivering comprehensive cloud security services to customers.
As per the statement made by Amir Ofek, Alcide’s CEO, the latest acquisition deal will provide a significant growth opportunity to the company. It is excited to join Rapid 7 and work on the joint commitment to provide innovative & accessible cloud security solutions to clients. Furthermore, the deal will enable it to continue focusing on Kubernetes infrastructure security to serve a broad range of customers.
As per reliable estimates, Elron Electronic Industries will obtain 12% of the takeover deal, which consists of 24% of the company’s shares. With this acquisition, it will also register $11.5 million as profit.