Arctic Wolf Networks has acquired RootSecure, a provider of cybersecurity risk and vulnerability assessment tools. The deal surfaces roughly six weeks after Arctic Wolf disclosed a $45 million Series C funding round.
By contrast, Arctic Wolf provides a SOC (security operations center) as a service to customers. The AWN CyberSOC is typically consumed by managed security service providers (MSSPs), MSPs and midmarket customers.
Armed with RootSecure, the overall Arctic Wolf product portfolio now allows customers to better assess and manage their cybersecurity risk while also detecting and responding to cyberthreats, the company asserts.
Risk Assessment Company Acquisitions
Demand for risk assessment services appears to be surging across the MSP and MSSP channels. Amid that reality, multiple risk assessment and vulnerability testing businesses have been acquired in recent months. For instance:
- ConnectWise recently acquired Sienna Group, an MSSP that educates MSPs and IT consulting firms about the NIST Cybersecurity Framework for risk management.
- Kaseya recently acquired RapidFire Tools, a popular MSP software provider focused on internal threat detection, network and security assessments, and compliance products.
Arctic Wolf Networks: MSP and Channel Strategy
Arctic Wolf, meanwhile, has been taking steps to bolster its own partner strategy. Among the company's key alliances and channel moves:
- An Ingram Micro partnership for distribution services;
- An integration with ConnectWise to help MSPs navigate business and security management
- A formalized MSP partner push surfaced in 2017.
Some or all of those moves appear to be paying dividends. The evidence: Arctic Wolf Networks quarterly revenues have grown 219 percent year-over-year in 2018 vs. 2017, the company says. Also, headcount has now reached 199 people.
Still, the company is privately held and does not disclose actual revenue or profit figures.
Describing the RootSecure acquisition, Arctic Wolf CEO Brian NeSmith said:
“As customers embrace SOC-as-a-service, they also want to understand their vulnerabilities. This acquisition augments our current offerings by adding comprehensive risk assessment to improve any customer’s overall cybersecurity posture.”
Added James Mignacca, CEO of RootSecure:
“Organizations are constantly challenged to keep up with the proliferation of devices and their inherent vulnerabilities. Locating devices, prioritizing vulnerabilities, and helping to remediate those vulnerabilities helps improve enterprise security hygiene. Pairing our continuous vulnerability scanning technology with Arctic Wolf’s SOC-as-a-service offering will enable customers to see a more holistic view of their security posture, in order to more quickly identify any cyber exposure gaps."
The Arctic Wolf RootSecure product portfolio can be deployed separately or in conjunction with the AWN CyberSOC. Product and service pricing was not disclosed in the M&A announcement.