Arctic Wolf: Convertible Debt Ahead of Potential Cybersecurity IPO?
Security operations platform provider Arctic Wolf is seeking to raise roughly $300 million in convertible debt while waiting for more favorable conditions in the IPO (initial public offering) market, The Information reported.
Among the key article takeaways:
- Lender Owl Rock Capital is involved in the discussions.
- Morgan Stanley is assisting Arctic Wolf with the debt raise process.
- Arctic Wolf, Owl Rock and Morgan Stanley did not comment in the report.
Arctic Wolf, founded in 2012, had been planning to pursue an IPO in 2022, but the company backed off that stance in February 2022 when financial markets weakened, SC Media reported at the time.
Arctic Wolf , based in Eden Prairie, Minnesota, raised $150 million in Series F funding in July 2021. The cybersecurity company was valued at roughly $4.3 billion at the time. As of August 2022, the company has 1,771 employees listed on LinkedIn.
Arctic Wolf Channel Partner Program, MSP Partner Strategy
Arctic Wolf develops a cloud-native security operations platform that MSPs can leverage, and VARs can re-sell into corporate SOCs. The platform “delivers automated threat detection and response at scale, and empowers organizations of virtually any size to establish world-class security operations with the push of a button,” Arctic Wolf claims.
Dig a little deeper, and you’ll see that the Arctic Wolf security platform also supports these services:
- Managed detection and response (MDR)
- Cloud detection and response
- Managed risk
- Cloud security posture management (CSPM)
- Managed security awareness
The Arctic Wolf Partner Program had more than 900 members as of June 2022. The company also extended incident response capabilities around that time. Partners that introduce non-Arctic Wolf customers to the Tetra Defense incident response service can become the partner-of-record for future Arctic Wolf opportunities.
Scaling the Arctic Wolf Security Business
Arctic Wolf has taken multiple steps to scale its business over the past year or two. Key milestones included:
- Acquiring Tetra Defense;
- expanding in Europe;
- hiring Sophos veteran Dan Schiappa as chief product officer;
- transitioning the CEO post to Schneider from Brian NeSmith;
- unveiling cloud security posture management (CSPM) tools; and
- raising that Series F funding.
Next up? The answer may involve convertible debt.