Network security

ExtraHop network security startup jumps to $ 900 million in output – TechCrunch

Last year, based in Seattle network security start ExtraHop was booming, quickly approaching $ 100 million in ARR and even making noise about a possible IPO in 2021. But there will be no IPO, at least for now, because the company announced this morning that it had been acquired by a pair of private equity firms for $ 900 million.

The companies, Bain Capital Private Equity and Crosspoint Capital Partners, are buying a security solution that provides controls in a hybrid environment, which could be useful as more companies find themselves in a position where they have certain assets. on-premise and others in the cloud.

The company is part of the smaller Network Discovery and Response (NDR) market. According to Jesse Rothstein, CTO and co-founder of ExtraHop, it’s a technology suited to today’s threat landscape: network traffic in wired data. This is where I think the network detection and response space is uniquely suited to protecting against advanced threats, ”he told TechCrunch.

The company uses analysis and machine learning to determine if there are threats and where they are coming from, regardless of how customers deploy the infrastructure. Rothstein said he envisions a world where environments have become more distributed with less defined perimeters and more porous networks.

“So the ability to have this high quality detection and response capability using next generation machine learning technology and behavioral analysis is very important,” he said.

Max de Groen, chief executive of Bain, said his company was drawn to the NDR space and saw ExtraHop as a key player. “When we looked at the NDR market, ExtraHop, which [ … ] spent 14 years building the product, really stood out as the best individual technology in the space, ”de Groen told us.

Security remains a sparkling market with strong growth potential. We continue to see a mix of startups and established platform players vying for a position, and private equity firms often attempt to establish a set of services. Last week, Symphony Technology Group bought the FireEye product group for $ 1.2 billion, just months after it scooped up McAfee’s corporate business for $ 4 billion as it tried to concoct a solution comprehensive corporate security.

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