“Cyber threats continue to rise fast and are growing more sophisticated. Organizations need advanced
Managed Detection and Response solutions to prevent attackers from gaining the foothold needed to
launch an attack. The combination of Pillr’s platform with our existing Threat Detection offerings
strengthens OpenText’s position in the Cybersecurity market and reinforces our commitment to our SMB
partners and customers.“ – Mark Barrenechea, CEO & CTO, OpenText
Overview of Transaction
- On May 22, 2024, OpenText Corporation (NASDAQ: OTEX, TSX: OTEX) announced the acquisition of Pillr, a managed detection and response (MDR) platform, from Novacoast, Inc.
- Pillr is a cloud-native, multi-tenant MDR platform designed specifically for Managed Service Providers (MSPs), featuring comprehensive Managed Detection and Response capabilities and advanced threat-hunting technologies
- The platform unifies security data sources and tools in a single console, with automatic data analysis and correlation across 35+ threat intelligence feeds
- Pillr supports 450+ integrations with leading security tools including Microsoft, CrowdStrike, SentinelOne, Sophos, Check Point, and ConnectWise
- The acquisition brings sector-specific expertise in areas including K-12 education and adds hundreds of MSPs in North America and the United Kingdom to OpenText's global network of 23,000+ MSP partners
Significance of Transaction
- The acquisition strengthens OpenText's position in the rapidly growing cybersecurity market and fills a critical gap in its cyber platform for managed service providers
- Pillr's cloud-native MDR capabilities complement OpenText's existing endpoint and email security solutions (acquired from Webroot and Zix), creating a comprehensive protect-detect-respond offering
- The integration addresses urgent market needs including cybersecurity skill gaps, talent shortages, and alert fatigue facing MSPs and their SMB customers
- Accelerates OpenText's cybersecurity product roadmap with advanced API integrations and product/pricing bundling specifically designed for MSP business models
- Most of Pillr's development and sales team (43 employees) joined OpenText, ensuring continuity of service and continued innovation
- Existing distribution relationships with Pax8 and D&H enable seamless integration into OpenText Secure Cloud and immediate availability to MSP partners
Momentum Cyber's Role
- Momentum Cyber served as exclusive financial advisor to Pillr and Novacoast on this transaction
- This transaction demonstrates Momentum Cyber's deep domain expertise in cybersecurity M&A and managed security services, along with its proven track record advising leading cybersecurity technology companies
- The successful outcome reflects Momentum Cyber's understanding of the MDR market dynamics and ability to identify strategic acquirers seeking to expand their SMB and MSP capabilities
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.