ExtraHop, a cloud-native network detection and response company announced that it has entered into a definitive agreement to be acquired by Bain Capital Private Equity (“Bain Capital”) and Crosspoint Capital Partners (“Crosspoint Capital”) in a strategic transaction valued at $900 million. Bain Capital is an investor in technology companies and a unit of one of the world's top multi-asset alternative investment firms. Crosspoint Capital is a private equity firm focused on cybersecurity, privacy, and infrastructure software sectors. Network detection and response (NDR) ExtraHop CEO Arif Kareem and co-founders Jesse Rothstein, Chief Technology Officer, and Raja Mukerji, Chief Customer Officer, will continue in their respective roles. Rothstein and Mukerji will also remain significant investors in the Company. According to research from IDC, ExtraHop is among the top three players in network detection and response (NDR), the second-fastest-growing segment of the cybersecurity market. The Company's growth has far exceeded that of the segment, and it has extended the power of its flagship platform to consolidate adjacent markets like intrusion detection, network forensics, and IoT security. Theft prevention Organisations today face sophisticated cyber-attacks from theft of sensitive personal and business data to illicit profit" “Organisations today face an array of incredibly sophisticated cyber-attacks with diverse motivations that run the gamut from theft of sensitive personal and business data to illicit profit. Attackers have long had the advantage, and we’re on a mission to change that,” said Kareem. “By combining our exceptional team, market need, and technology with the deep domain expertise and resources of Bain Capital and Crosspoint Capital, ExtraHop has the opportunity to grow faster and accelerate our innovation to help our customers defend their operations from even the most advanced threats.” Cybersecurity “As the events of the last few weeks make crystal clear, cybersecurity is now a mission-critical requirement in the strategy and operations of every organisation on the planet, with enormous implications for financial and reputational well-being.” “We believe that network detection and response is the next major cybersecurity segment and that ExtraHop has the best enterprise technology in the space,” said David Humphrey, a Managing Director at Bain Capital Private Equity. Address threats and security challenges “The Company’s approach is uniquely positioned to help enterprises defend against the most advanced cyber threats and address the security challenges of multi-cloud environments, enterprise IoT, and hybrid workforces. We are thrilled to join the talented team at ExtraHop, in partnership with Crosspoint Capital, to help accelerate the growth of the business and continue advancements in the art of cyber defense,” added Max de Groen, a Managing Director at Bain Capital Private Equity. ExtraHop is the first dedicated investment made from Bain Capital Fund XIII, the firm’s latest flagship $11.8 billion private equity fund. AI and behaviour-based analytics “After many years of building and delivering network visibility into the cyber industry, I was very impressed with the capabilities of ExtraHop in their ability to protect the evolving network as workloads shift to the cloud and networks expand beyond what corporations control,” said Greg Clark, Managing Partner at Crosspoint Capital. “When you're under attack, deep visibility into east-west traffic is vital for modern defense and ExtraHop has set itself apart in this emerging category with powerful AI and behaviour-based analytics.” Real-time detection and response ExtraHop brings visibility and delivers sophisticated real-time detection, investigation, and response capabilities" Ian Loring, the Managing Partner at Crosspoint Capital, added “ExtraHop brings a unique level of visibility into networks and delivers sophisticated real-time detection, investigation, and response capabilities to organisations around the world. We are excited to partner with the ExtraHop team and Bain Capital to support the Company in the next chapter of its growth.” Investments ExtraHop is among the first investments in Crosspoint Capital Fund I, a $1.3 billion private equity fund focused on the cybersecurity, privacy, and infrastructure software sectors. The transaction is expected to close in the summer of 2021 and is subject to customary closing conditions, including receipt of regulatory approvals. Qatalyst Partners is serving as the exclusive financial advisor to ExtraHop, and Wilson Sonsini is serving as legal counsel. Morgan Stanley is serving as the financial advisor to Bain Capital. Ropes & Gray LLP is serving as legal counsel to Bain Capital and Crosspoint Capital.
ExtraHop, the leader in cloud-native network detection and response, announced its top predictions for the cybersecurity and technology industries in 2020. Informed by insight from customers, partners and industry analysts and insiders, ExtraHop leaders predict a year of tool consolidation, headline-grabbing breaches and a shifting industry focus on what makes a successful tech start-up. The Year of Deeper Scrutiny for Fast-Growth Companies: “2019 was a tough year for heavily hyped, fast-growth companies going public in Silicon Valley. Several companies that raised huge rounds ultimately failed to deliver expected results or even approach profitability after they went public, and Wall Street was not amused. In 2020, we expect the investment community to more deeply scrutinise companies' financials and business fundamentals, ultimately leading to the support of companies who deliver on their promises, are capital-efficient with sound vision and innovation, and have truly sustainable business results and models to back them up.” - Arif Kareem, CEO File hashing has been the default mechanism for detecting malicious threat activity" Antiquated Threat Detection Methods like File Hashing and Signature-Based IDS Waste Time: “Since the 1990s, file hashing has been the default mechanism for detecting malicious threat activity, despite the fact that it's ineffective against modern attacks that use polymorphic or fileless methods to go undetected. The same goes for signature-based IDS, which are extremely noisy while providing very little actual alert context. Security teams will continue to rely on these antiquated methods of detection because they are expected to, regardless of how well they work in today's threat landscape.” - Jesse Rothstein, CTO and co-founder Accountability for the Ethical Use of Users’ Data: “Recent headlines tell of giant data corporations like Google and Facebook monetising users' data and lacking sufficient transparency in these activities. There’s already been significant social backlash, but in 2020 we predict that users will demand companies not just follow the often-dated laws, but that they also do what’s right. Regulations like GDPR and CCPA are helping to bring more clarity around what’s appropriate, but 2020 will be the year that the industry is held accountable for the ethical, in addition to regulatory-compliant, use of personal data.” - Raja Mukerji, CCO and co-founder A Slowing Economy Will Force Tool Consolidation: “In security programs, it's been very difficult to turn tools off. What gaps will I create? What unintended consequences will I see? As the economy has rolled along over the last decade, most security programs have had the necessary funding to add new tools and retain legacy tools under the guise of risk management. Economic slowdown is likely to change all of that, as investments in new technology will require cost savings elsewhere. A tighter economy will finally cause us to pull the plug on legacy security tools.” - Bill Ruckelshaus, CFO A tighter economy will finally cause us to pull the plug on legacy security tools""Observability" Will Gain Ground as Both a Concept and a Vocabulary Term in Security and DevOps: “Observability is a term that several companies are using to describe the practice of capturing metrics, logs and wire telemetry, or sometimes other data sources, mostly in the DevOps space. The value of correlating insights from these data sources has gained enough ground that vendors need a word for it. Observability, The SOC Visibility Triad, and other terms have been spotted in marketing materials and on big screens and main stages at security and analytics conferences. In 2020, we'll see heated competition to control the vocabulary and mental models that enterprises and vendors use to discuss and market security best practices regarding gathering multiple data sources and correlating insights between them.”- John Matthews, CIO A Major Information Leak from a Cloud Provider is Coming: “In 2020, we are likely to see a major information leak from a cloud provider. While at the same time the cloud providers are providing many useful built-in tools, it's not clear that they are using their own tools to secure themselves. As a further prediction, the leak will not effectively diminish migration to the cloud. As we have noticed with other breaches, they do not significantly erode confidence in the services.” - Jeff Costlow, CISO 2020 may well be the year that a breach of a vendor’s environment exposes the data of one or more of their customers" The Wave Begins Towards Security Tool Consolidation: “Organisations will take a strong look at the number of security vendors within their ecosystem in 2020 to determine overlap and begin a move towards consolidation of tools. The winners will include those that have proven their API superiority and ability to work together within an organisation’s ecosystem. The losers will be those who have not proven their ability to strengthen core security.” - Chris Lehman, SVP of Worldwide Sales A Vendor Will Be Responsible for a Major Breach of Data Due to Phoning Home: “In 2019, ExtraHop issued a security advisory about the vendor practice of phoning data home and how this is happening without the knowledge of customers. The problem with this practice is that it expands the attack surface via which that data can be breached, exposing it to threats within the vendor’s environment. 2020 may well be the year that a breach of a vendor’s environment exposes the data of one or more of their customers. Regulations like GDPR have imagined exactly this type of scenario and laid out specific requirements for data controllers and data processors. But when such a breach occurs, it will have broad impact and implications.” - Matt Cauthorn, VP Security The Big IoT Breach is Coming: “In 2017, major ransomware attacks crippled the networks, and operations, of major global organisations. While those attacks did billions in damage, for the most part, IoT devices were left unscathed. But sooner or later, and probably sooner, the big IoT breach is coming, and it could have global implications. Whether it happens in the US or abroad, in healthcare, shipping and logistics, or manufacturing, IoT devices around the globe are fertile hunting grounds for attackers. Taking down every connected device, from telemetry sensors to infusion pumps to mobile points-of-sale, could easily grind operations to a halt.” - Mike Campfield, VP of Global Security Programs
ExtraHop, global provider of cloud-first network detection and response solutions, has announced the appointment of experienced technology and software industry veteran Bill Ruckelshaus as its Chief Financial Officer (CFO). Ruckelshaus joins the company as it accelerates with more than 10x growth in cybersecurity and rapid expansion of its cloud product portfolio. He will hold a position on the ExtraHop executive leadership team, reporting to ExtraHop CEO Arif Kareem. Cybersecurity expert Ruckelshaus brings nearly three decades of experience working with high-growth companies both internally and as an external financial advisor. As CEO and President at Blucora, Ruckelshaus led the company through a major transformation to become a globally renowned financial services and technology firm. Bill’s operational acumen and experience accelerating growth within the industry will be invaluable" Prior to Blucora, Ruckelshaus held CFO and COO positions with major technology companies including Expedia and AudienceScience. His experience also includes leadership roles in mergers and acquisitions at major financial institutions including Credit Suisse and Prudential. In his new role at ExtraHop, Ruckelshaus will steer the company through its next phase of hyper growth in security and the cloud. Expanding network detection market "Bill brings a rare depth and breadth of experience to ExtraHop leading and advising high-growth technology companies," said Arif Kareem, CEO of ExtraHop. "As we continue to expand our business and gain market share in the rapidly expanding network detection and response market, Bill’s operational acumen and experience accelerating growth within the industry will be invaluable. We look forward to having him on board as part of the ExtraHop team." "Bill’s depth of experience guiding companies through growth and strategic financings will be a significant asset to ExtraHop as it seeks to grow its global enterprise footprint and cement its position as a force in enterprise security,” said Matt McIlwain, managing director at Madrona Venture Group and a member of the ExtraHop Board of Directors. Security as a Service (SaaS) "ExtraHop is the rare growth company that combines exceptional innovation with operational excellence," said Ruckelshaus. "The company’s accelerating growth in cybersecurity, it’s recent expansion into SaaS, and the rapidly emerging network detection and response category combine to put ExtraHop on the precipice of a breakout year. It’s an exciting time to join this company, and I look forward to shepherding ExtraHop through its next phase of growth.”
ExtraHop, specialising in analytics for security and performance management, has announced it has been recognised by Gartner in the Visionaries quadrant of the ‘Magic Quadrant for Network Performance Monitoring and Diagnostics’. For the second consecutive year, ExtraHop is positioned furthest to the right on the completeness of vision axis in the entire Magic Quadrant. “From our view, ExtraHop has built a reputation as a disruptor, delivering unmatched scale and accuracy that keeps our customers focused on the assets and information that matter most. We are proud that Gartner has recognised ExtraHop as Visionary in the NPMD market for the second year in a row," said Arif Kareem, CEO, ExtraHop. "We view the network as a powerful source of insight for IT and security operations – not just traditional performance management – and we're combining machine learning with highly scalable workflows to deliver true security and operational intelligence. We feel that our placement in the 2018 Gartner Magic Quadrant for Network Performance Monitoring and Diagnostics recognises our vision.”The network has never been a more powerful source of intelligence for the enterprise Security risk mitigation The world’s leading businesses trust ExtraHop to deliver the insight required for a secure and high-performance enterprise. The company’s differentiated approach to combine an analytics-first workflow with machine learning to surface insights and threats within the enterprise, helping networking, IT, and security teams optimise performance and minimise security risk. The ExtraHop platform analyses every digital interaction on the network, from the data centre to the cloud to the branch office, turning this vital data into the most timely, definitive, and complete source of business intelligence. “The network has never been a more powerful source of intelligence for the enterprise, and ExtraHop delivers on that promise,” said Bryce Hein, Senior Vice President of Marketing at ExtraHop. “Our AI leads the industry in delivering insight at scale for performance and security. We were the first vendor to support PFS decryption at line rate. Our hybrid and cloud deployment supports the reality of modern architectures. We are the analytics vendor our global customers trust to deliver a secure, high-performance enterprise.”