SailPoint Buys Two Cloud Security Startups For $37.5 Million
Purchasing OverWatchID and Orkus should help the identity governance company detect potential anomalies in the cloud, enforce access policies across all users, and maintain compliance across all enterprise infrastructures.
Identity governance provider SailPoint has purchased emerging vendors Orkus and OverWatchID to help customers better control access to applications in public cloud environments.
The Austin, Texas-based cybersecurity vendor said the acquisitions, totaling $37.5 million, will make it easier for customers to accelerate access decisions to sensitive cloud resources. Specifically, SailPoint said OverWatch ID and Orkus should help with detecting potential anomalies, better enforcing access policies across all users, and maintaining compliance across all enterprise infrastructures.
“As the adoption of cloud applications and IaaS environments like AWS, [Microsoft] Azure and Google Cloud continues to skyrocket, organizations today need to better address how they control access to these cloud resources to avoid introducing new areas of security, operational and regulatory risk,” SailPoint Chief Product Officer Paul Trulove said in a statement.
SailPoint’s stock is down 47 cents (2.57 percent) to $17.83 in trading Wednesday morning. The company did not immediately respond to a request for additional comment.
OverWatchID was founded in 2016, employs 16 people, and has raised $4.5 million in two rounds of outside funding, according to LinkedIn and CrunchBase. The Denver-based startup develops and licenses software products focused on access control security for cloud applications, cloud computing, hybrid IT environments and on-premises infrastructure.
OverWatchID’s ability to use activity information should help SailPoint improve the application of access controls, particularly in cloud-based environments, Trulove said. SailPoint paid $21 million to acquire OverWatchID, according to a filing with the U.S. Securities and Exchange Commission.
Orkus was founded in 2017, employs 26 people, and hasn’t raised any outside equity, according to LinkedIn and CrunchBase. The San Jose, Calif.-based startup develops and licenses software products to help customers monitor and control access and authorization across hybrid cloud assets.
Buying Orkus will help SailPoint customers leverage artificial intelligence and machine learning to continuously monitor access relationships and patterns on public cloud platforms, Trulove said. SailPoint paid $16.5 million to purchase Orkus, according to an SEC filing.
“With these acquisitions, SailPoint is once again driving the evolution of identity governance to keep pace with the speed of business,” Trulove said in the statement. “By deepening the governance of cloud infrastructures, we are expanding the definition and scope of what an identity governance platform should be capable of managing.”
Both Orkus and OverWatchID are expected to be integrated into the SailPoint Predictive Identity Platform in the first half of 2020, the company said. The deals are not expected to generate any material revenue in the quarter ended Dec. 31, 2019, but are expected to add roughly $2 million of non-GAAP expense to SailPoint’s bottom line in the current quarter.
These are SailPoint’s first acquisitions since its July 2015 purchase of Whitebox Security, according to CrunchBase, which was focused on reducing security risk by identifying where sensitive data resides, who has access to it and how it is used. SailPoint hasn’t made any other acquisitions since its founding in 2005.
In SailPoint’s most recent fiscal year, which ended Dec. 31, the company grew revenue to $248.9 million, up 33.8 percent from $186.1 million the year prior. Net income came in at $3.6 million, or 4 cents per share, improved from a loss of $28.7 million, or 55 cents per share, the year prior.