This is technology M&A deal number 293 that MSSP Alert and sister site ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
This is Coalfire's second acquisition in recent weeks. The other deal involved buying penetration testing platform provider Neuralys in April 2021.
Also of note: Global IT consulting firm Wipro had owned about 33 percent Denim Group as of March 2018. Wipro sold the stake for $22.42 million to Coalfire, according to a filing with BSE (India's stock exchange). Wipro no longer owns any part of Denim Group, according to a Coalfire spokesperson.
Blending Cloud and Application Security
The combined Coalfire-Denim Group teams now serve over 1,800 clients, including the top five cloud service providers, half of the largest U.S. banks, along with government agencies and healthcare companies, the buyer says.
Denim Group Develops ThreadFix, an application security orchestration and correlation (ASOC) platform. The San Antonio, Texas-based company also offers consulting services -- including security assessments, vulnerability remediation -- and an application security accelerator program.
In a prepared statement about the Denim Group deal, Coalfire Chief Operating Officer Mark Carney said:
"Agile development methods are rapidly changing time to market expectations and increasing frequency of release cycles, yet clients are challenged by how to rationalize the volume of application and cloud vulnerabilities generated from disparate testing tools. Our approach leverages advanced consulting services combined with the ThreadFix platform to ensure vulnerabilities are managed and prioritized efficiently, reducing time to remediation by 40 percent."
Added Denim Group Principal John Dickson:
"Together, our combined teams represent one of the largest, most advanced, and industry-recognized cloud and application security solution providers. We are committed to continuing to invest in and optimize the ThreadFix platform while supporting and expanding our ecosystem of partners. It's even more meaningful for our teams to join forces the same year that both our companies celebrate 20 years of dedication to making technology more secure.