Arctic Wolf Pivots From IPO Talk to $401 Million Convertible Note Offering
Arctic Wolf, a security operations platform provider, has closed a $401 million convertible note offering led by existing investor Owl Rock Capital. Read between the lines, and the move essentially allows Arctic Wolf to finance growth until the IPO (initial public offering) market improves, MSSP Alert believes.
Indeed, Arctic Wolf originally wanted to go public in 2022, but IPO windows essentially closed amid rising interest rates, steep inflation and other economic headwinds. Amid those IPO challenges, rumors about Arctic Wolf striving to raise roughly $300 million surfaced in August 2022.
Arctic Wolf Talent Expansion
Fast forward to October 2022. The financing helps Arctic Wolf bridge “the security operations gap faced by businesses of all sizes,” CEO Nick Schneider said. It supports Arctic Wolf’s mission to continue to develop new capabilities, technologies and services to help companies combat cyber risk.
Meanwhile, Arctic Wolf doubled its headcount over the past 12 months. New hires during this time included Duston Williams as CFO and Dan Schiappa as its chief product officer.
In addition, Arctic Wolf has expanded into South Africa, Benelux and the Nordics, and opened a new office in Northeast England. It also plans to launch in the APAC region.
Arctic Wolf Extends Channel Market Reach, Eyes IPO
More than 1,100 channel partners utilize Arctic Wolf technologies. On the M&A front, Arctic Wolf in 2022 acquired incident response company Tetra Defense and started offering the business’ incident response capabilities to its partners.
Organizations can use the Arctic Wolf Security Operations Cloud security operations platform to ingest and analyze security events from around the world. Arctic Wolf also offers a channel partner program that lets MSSPs and MSPs use this platform to deliver security operations center-as-a-service (SOCaaS) and managed detection and response (MDR) offerings.
Additional insights by Joe Panettieri.