Rapid7, a security analytics and automation company, has acquired network visibility solution provider NetFort for an undisclosed sum. The company also plans to integrate NetFort's network monitoring, visibility and analytics capabilities into its Insight cloud.
Insight blends network visibility, security analytics, orchestration and automation capabilities, Rapid7 indicated. It processes billions of events and monitors millions of assets daily to help organizations manage risk, identify and stop cyberattacks and coordinate security operations across their networks.
What Does the NetFort Acquisition Mean for Rapid7?
The NetFort acquisition could help Rapid7 accelerate its revenue growth following a profitable third quarter of 2018.
Notable NetFort 3Q18 financial results included:
- Total revenue under ASC 605 of $65.5 million, up 30 percent year over year.
- Annualized recurring revenue (ARR) of $217.4 million, an increase of 46 percent year over year; 3Q18 also marked the fifth consecutive quarter of ARR growth for Rapid7.
- Calculated billings under ASC 605 of $61 million, which represented a 4 percent year-over-year increase.
The NetFort acquisition also could help Rapid7 capitalize on a network visibility and monitoring (NVM) solutions market that is projected to grow.
NVM solutions market revenues are expected to increase at a compound annual growth rate (CAGR) of 11.9 percent between 2015 and 2019, industry analyst 451 Research indicated. In addition, these revenues could exceed $1.6 billion this year.