Channel investors, Content

Arctic Wolf Acquires Habitu8 for Managed Security Awareness Training


Arctic Wolf has acquired Habitu8 to further expand its managed security awareness training platform. Financial terms of the deal were not disclosed.

This is technology M&A deal 602 that MSSP Alert and sister site ChannelE2E have covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

Arctic Wolf Buys Habitu8: Part of Larger Strategy

Habitu8, founded in 2017, produces security training and awareness programs with a "Hollywood-style aesthetic," Arctic Wolf says.  Habitu8 co-founder Jason Hoenich will shift to VP of service delivery at Arctic Wolf.

Habitu8 has four employees listed on LinkedIn, so this appears to be a small tuck-in deal for Arctic Wolf. Ahead of the M&A deal, early Habitu8 investors included Tech Coast Angels, according to Crunchbase.

The M&A deal surfaces roughly two months after Arctic Wolf promoted Nick Schneider to CEO in preparation for a potential IPO. The security operations center-as-a-service (SOCaaS) company also raised $150 million in Series F funding in July 2021. The company has achieved 100 percent annual recurring revenue (ARR) growth in each of the last seven years, Arctic Wolf has previously stated. Actual revenue dollar figures and profit/loss figures have not been.

Arctic Wolf Buys Habitu8: Executive Perspectives

In a prepared statement about the Habitu8 acquisition, Schneider said:

“The overwhelming majority of cybersecurity events target users with increasingly more sophisticated tactics, and we know that training and awareness programs are a cornerstone in ending cyber risk. Unfortunately, the content that most security programs offer is low-grade, often tedious, and ultimately doesn’t effectively serve the needs of modern users who expect on-demand and high-quality experiences like Netflix. With the addition of Habitu8 to the Arctic Wolf Platform, we will deliver modern, high-quality security awareness and training programs as a managed service, which combined with our expert concierge guidance will significantly strengthen customers’ overall security operations.”

Added Hoenich:

“I’m excited to join the Arctic Wolf ‘Pack’ and to bring Habitu8’s award-winning content model and library to the leading security awareness and training platform. Data tells us that humans need ongoing, engaging and memorable content to retain and resonate with training concepts. I am confident that combining the power of Arctic Wolf Managed Security Awareness and the Arctic Wolf Platform with our Hollywood-style content will make this the most effective and sought-after solution on the market for customers of all sizes.”

Cybersecurity Awareness Training: Market Competition

Customer, partner and investor demand for cybersecurity awareness training tools appears strong. Multiple MSP-centric software companies -- such as Barracuda, OpenText's Webroot, and Sophos -- offer cybersecurity awareness training software. Also, KnowBe4 has been a dominant cyber awareness training brand in the enterprise.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.