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Sources: Palo Alto Networks acquired DevOps security startup Bridgecrew for around $200M

 

The pandemic and the world’s large shift to doing (even) extra on-line has put an unprecedented quantity of stress on cybersecurity. Now, it seems like one of many large public gamers in that area, Palo Alto Networks, has made an acquisition that may assist it handle that problem, particularly with safety instruments designed for these working in DevOps to deal with huge volumes of safety information extra effectively.

According to our sources and experiences, the corporate is buying Bridgecrew, a startup out of Israel that automates the method of community monitoring and safety remediation by translating the suggestions into code. Its instruments are utilized by fast-scaling, internet-based companies like Robinhood, BetterHelp and OneMain Financial.

The acquisition was first rumored earlier this month in Israeli press as a deal value greater than $100 million. Two sources confirmed the talks to us on the time however stated the deal had not but been closed. Then, a report this morning in Israel’s Calcalist stated the acquisition is now valued at round $200 million, presumably extra in case you depend earn-outs.

Sources near the startup’s traders affirm to us that the papers have certainly now been signed on the deal, so anticipate an official announcement quickly.

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Spokespeople for each firms beforehand declined to touch upon any deal once we requested earlier this month. We are reaching out to each once more.

A $200 million price ticket would symbolize a powerful return for Bridgecrew and its traders.

The startup, backed by the likes of Battery Ventures, Operator Partners and greater than a dozen others, has solely raised round $18 million, together with a Series A of $14 million final 12 months. According to PitchBook information, Bridgecrew had a valuation of about $40 million on the time of that final spherical.

Cybersecurity — particularly the necessity for higher and extra refined options within the face of an growing quantity of breaches in an ever-growing risk panorama — has seen an growing focus for years. Indeed, it’s one of many rising tides that has lifted Palo Alto Networks’ boat.

But within the final 12 months, the Covid-19 pandemic has introduced extra consideration to cybersecurity and the necessity for extra automation in it than ever earlier than.

The purpose is pretty apparent however is value repeating: as extra organizations migrate operations into distributed, digital-only, cloud-based environments, architectures have change into extra fragmented, advanced and easily greater and extra of an exploitation goal.

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That’s offered a problem for these provisioning safety for these operations, and that has led to a brand new wave of firms during the last a number of years constructing automated options, merging DevOps with safety monitoring.

“We based Bridgecrew as a result of we noticed that there was an enormous bottleneck in safety engineering, in DevSecOps, and the way engineers had been operating cloud infrastructure safety,” Bridgecrew CEO and co-founder Idan Tendler informed TechCrunch final 12 months. Others on this wider area embrace PortShift (which was acquired by Cisco final 12 months), Tines and plenty of others.

Palo Alto Networks has additionally been constructing its personal instruments for DevOps safety, specifically with Prisma, which it launched in 2019 and up to date final 12 months.

It’s not clear why Palo Alto would select to complement that with an out of doors acquisition, but it surely’s notable that Bridgecrew focuses on DevOps safety particularly and it has seen loads of traction in that space.

Its candy spot seems to be clients who’re constructing big companies themselves on cloud infrastructure and are utilizing automation as a part of greater efforts to make sure higher cybersecurity practices.

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It counts clients like Databricks for its flagship Bridgecrew platform product, which offers safety scanning and remediation within the type of code throughout a variety of infrastructure environments. The firm just lately stated that its buyer base and month-to-month signal ups each tripled within the second half of final 12 months.

It has additionally seen loads of pick-up of Checkov, its open supply infrastrcuture-as-code (IaC) scanner that it says works throughout cloud infrastructure in Terraform, Cloudformation, Kubernetes, Arm templates or Serverless Framework to detect misconfigurations.

Checkov handed a milestone of 1 million downloads final quarter, chatting with the corporate’s popularity and traction with the very clients that Palo Alto is seeking to attain.

Notably, Bridgecrew says it’s engaged on different open supply initiatives, so that would additionally catch the attention of Palo Alto right here.

Another takeaway from this information is how Israel continues to be fertile floor for hatching and rising cybersecurity companies.

“Palo Alto Networks was established by Israeli founders, and Bridgecrew would be the seventh Israeli cybersecurity firm acquired by Palo Alto within the latest years,” stated Avihai Michaeli, a Tel Aviv-based senior funding banker and startup advisor.

We will replace this story as we be taught extra.

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