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M&A Deal: SandboxAQ, a Post-Quantum Cryptography (PQC) Specialist, Acquires Cryptosense

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Alphabet spinoff SandboxAQ, an enterprise SaaS company specializing in artificial intelligence and quantum tech (AQ) to governments and the Global 1000, has acquired Cryptosense, a cybersecurity and encryption analysis software company, according to a prepared statement.

This is technology M&A deal number 821 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.

SandboxAQ, based in Silicon Valley, California, has 82 employees listed on LinkedIn, while Cryptosense, with offices in Paris, London and Cambridge, Massachusetts, lists 19 employees.

SandboxAQ stated that the acquisition comes just weeks after announcing its Strategic Investment Program and initial investment in evolutionQ, a quantum delivery network software provider.

Boosting SandboxAQ’s PQC Solutions

The Cryptosense acquisition complements and accelerates the deployment of SandboxAQ's Post-Quantum Cryptography (PQC) solutions to corporations and government institutions worldwide, the company said. SandboxAQ notes that its cybersecurity products enable large enterprises to scale cryptography management across their IT infrastructure, providing CISOs with a single, 360-degree view of how encryption is used throughout the enterprise.

This migration to stronger cybersecurity is important for critical infrastructure sectors such as financial services, technology, energy, biopharma, logistics, and government, SandboxAQ asserts. The combined customer relationships will help SandboxAQ bring its post-quantum cryptography (PQC) solutions to market faster and protect these organizations and their customers from existing and emerging quantum threats.

The goal of post-quantum cryptography (also called quantum-resistant cryptography) is to develop cryptographic systems that are secure against both quantum and classical computers. These systems can interoperate with existing communications protocols and networks.

SandboxAQ CEO Jack D. Hidary explained the motivation behind the Cryptosense acquisition:

"Rapid advances in quantum computing and AI challenge the effectiveness and performance of existing cryptography-based cybersecurity solutions. The combined leadership, talent and expertise that SandboxAQ and Cryptosense bring to the marketplace accelerates the deployment of more effective cryptography solutions to protect the world against the security threats of today and tomorrow.”

Dr. Graham Steel, Cryptosense founder, added:

"The complementary functionality and expertise between Cryptosense and SandboxAQ enable us to build and deliver SaaS solutions at scale with higher touch customer service. PQC implementation is critical to protect the world's sensitive data and together we will make a greater impact."

More About Cryptosense

Founded in 2013, Cryptosense offers cryptography management software designed to protect sensitive data against data breaches. Positioned as cryptography management at the speed of DevOps, the Cryptosense platform provides full visibility into cryptography during development and a full inventory in production. (Source: SiliconAngle)

Cryptosense’s offerings resolves compliance issues before release, including finding and remediating dangerous vulnerabilities. The solution integrates into continuous integration/continuous delivery and supports software, hardware and cloud cryptography services to make  cryptography fast, easy and accessible to developers.

The company’s Analyzer Platform analyzes applications to assess how they are using cryptography, from encrypting data at rest or in transit to signing and verifying code.

Cryptosense services some of the largest technology and financial services companies. The company handles 70% of all interbank messages, the European Union backend of the world’s largest automatic teller machine provider and 45% of all U.S. credit card transactions.

Noteworthy, Cryptosense announced a $4.8 million funding round in May 2021 backed by Amadeus Capital Partners, Elaia Partners and BGV.

Jim Masters

Jim Masters is Managing Editor of MSSP Alert, and holds a B.A. degree in Journalism from Northern Illinois University. His career has spanned governmental and investigative reporting for daily newspapers in the Northwest Indiana Region and 16 years in a global internal communications role for a Fortune 500 professional services company. Additionally, he is co-owner of the Lake County Corn Dogs minor league baseball franchise, located in Crown Point, Indiana. In his spare time, he enjoys writing and recording his own music, oil painting, biking, volleyball, golf and cheering on the Corn Dogs.