“We are thrilled to welcome Alcide to Rapid7. The technical talent within Israel’s Cybersecurity ecosystem is unparalleled and we look forward to working together with the Alcide team to provide organizations with comprehensive cloud security that drives business growth and innovation.”
– Corey Thomas, CEO, Chairman, Rapid7
“Today marks the beginning of an exciting new journey for Alcide. We are excited to join Rapid7 not only because of our shared commitment to providing customers with innovative and accessible cloud security solutions, but this also gives us an opportunity to bring our market-leading Kubernetes security platform to a broader set of customers. I am especially proud of having another multinational company join the Israeli ecosystem and enjoy the great cyber talent and innovation it has to offer.”
– Amir Ofek, CEO, Alcide
Transaction Overview
- On February 1st, 2021, Rapid7, Inc. (NASDAQ: RPD), a leading provider of security analytics and automation, announced it has acquired Alcide, a leading provider of Kubernetes security based in Tel Aviv, Israel
- This is the second acquisition Rapid7 has made in the cloud security market in the past nine months, having acquired DivvyCloud, a leader in Cloud Security Posture Management (CSPM) this past April. Together, these acquisitions will enhance Rapid7's ability to provide a cloud native security platform to its customers and facilitate continuous management of risk and compliance across their cloud environments
- Alcide is a Kubernetes security leader empowering DevOps teams to drive seamless security guardrails to their CI/CD pipelines, and security teams to continuously secure and protect their growing Kubernetes deployments. Founded in 2016, Alcide raised approximately $12 million in funding prior to the acquisition
- Alcide provides a single Kubernetes-native AI-driven security platform for cross Kubernetes aspects: configuration risks, visibility across clusters, and run-time security events. Combined with policies enforcement and a behavioral anomaly engine that detects anomalous and malicious network activity, Alcide works to ensure that the entire dev-to-production pipeline is secured
- Rapid7 acquired Alcide for a total purchase price of approximately $50 million, subject to certain adjustments. The acquisition is not expected to have a material impact to Rapid7's financial results for calendar year 2021
- Rapid7 provides one of the most comprehensive security operations platforms in the market today, with a broad set of best-of-breed capabilities across SIEM-based incident detection and response, vulnerability management, application security and security orchestration, automation and response
Transaction Significance
- With this acquisition, Rapid7 will expand and strengthen its cloud security offering, bringing together Alcide's cloud workload protection (CWPP) capabilities with the company's existing cloud security posture management (CSPM) and infrastructure entitlements (CIEM) capabilities, to provide customers with a more holistic, unified experience for managing the challenges of cloud-native application security
- The transaction represents Rapid7's first-ever acquisition in Israel, giving the Company strategic access to industry-leading thought leadership, domain expertise, and talent present within the Israeli cyber ecosystem
- Alcide's technology is built to bridge security and DevOps with code-to-production security for Kubernetes deployments. The company's technology provides seamless Kubernetes security fully integrated into the DevOps lifecycle and processes so that applications can be rapidly deployed while also protecting cloud environments from malicious attacks
- Organizations are taking advantage of the flexibility, speed and agility that the cloud offers to accelerate innovation and deliver value to customers faster. With this, developers are increasingly turning to Kubernetes to quickly develop and deliver containerized applications
- Alcide's industry leading cloud workload protection platform (CWPP) provides broad, real-time visibility and governance, container runtime and network monitoring, as well as the ability to detect, audit and investigate known and unknown security threats
- The deal is part of an industry trend with a number of Kubernetes security startups being acquired by larger companies looking to enhance their container security capabilities, including VMware acquiring Octarine, Cisco acquiring PortShift, and Red Hat acquiring StackRox
Momentum Cyber's Role
- Momentum Cyber acted as exclusive financial & strategic advisor to Alcide
- This transaction demonstrates Momentum Cyber's deep domain expertise in cybersecurity M&A and its proven track record advising leading Kubernetes security, cloud-native security, and container security providers on strategic transactions
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.