McAfee made its first acquisition after it was split from Intel into an independent security company earlier this year. The company announced today that it has acquired Skyhigh Networks, a cloud security specialist.
The two sides did not disclose the terms of the transaction, but some data provide a general understanding of the deal: Skyhigh raised $ 106 million in Round D round a year ago and said the company's valuation was 400 million Dollars. Its investors include Sequoia Capital, Greylock and Salesforce.
The deal is the latest sign of continued consolidation in the security industry. Right now, small security companies are merging with larger companies to provide more secure services. This has meaning on many levels.
First, cybersecurity has become one of the biggest headaches in the market. Hacking is not only a nightmare for businesses, but also for individual users.
McAfee's traditional business is terminal security, this time of its acquisition of Skyhigh, is to strengthen its cloud security business. Skyhigh CEO Rajiv Gupta will run McAfee's Cloud Business Unit.
Another layer of meaning is that security services are evolving: security companies are turning to data analytics, machine learning, and other artificial intelligence technologies to identify, track, and stop cybercrime. Make the service even more powerful by combining different security services with the ability to use and improve larger databases.
In response to the deal, McAfee CEO Chris Young said: "Skyhigh Networks realized five years ago that the cloud network security environment will not hinder the adoption of cloud services. They pioneered a new product category: Cloud Access Security Agents (CASB). Analysts said CASB is the fastest-growing area for information security investment over the past five years. Skyhigh's continued innovation and leadership in this space, combined with McAfee's security portfolio, will allow the company to stand out from its full potential in helping businesses operate freely and securely. & rdquo;
It is not yet clear whether Skyhigh has made a profit, but expects the company to get more from McAfee. When split from Intel in April this year, McAfee's valuation was $ 4.2 billion.
"Being part of McAfee is an ideal step toward implementing Skyhigh Networks vision of not only making cloud services more secure but also creating the most secure environment for your business," Gupta said in a statement. "McAfee will provide a global dimension to further accelerate Skyhigh's growth." The combined company will provide technologies and solutions that cover cloud and endpoint security. & rdquo;
It is reported that Skyhigh Networks has developed a series of services in the areas of software as a service (SaaS), platform as a service (PaaS), infrastructure as a service (IaaS).
The deal still needs to get the regulatory approval, and to meet other conditions for the transaction.