Kaseya has acquired RocketCyber, a key move for MSPs that are seeking MDR (managed detection and response) and SOC (security operations center) as a service (SOCaaS) solutions to mitigate risk across MSP and end-customer systems. Financial terms were not disclosed.
This is M&A deal number 137 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Kaseya is perhaps best known for its IT management and automation software, but the company also has a growing cybersecurity revenue stream -- which reached more than $100 million annually before the RocketCyber deal.
Admittedly, the MDR market and SOCaaS industry are crowded with dozens of competitors. But Kaseya says RocketCyber offers the best of both worlds: RocketCyber is purpose-built for MSPs -- and has integrations across the Kaseya product line.
Indeed, the security platform already supports Kaseya VSA, Kaseya BMS and Passly. Moreover, RocketCyber aligns with Kaseya's growing portfolio of compliance, risk mitigation, data protection and security tools. Forthcoming integrations will support Kaseya's ID Agent, Graphus and RapidFire Tools offerings, the buyer says. And yes, RocketCyber has dozens of third-party integrations.
Kaseya Acquires RocketCyber: Executive Perspectives
In a prepared statement about the deal, Kaseya CEO Fred Voccola said:
“The addition of RocketCyber makes Kaseya IT Complete the only integrated platform in the market to deliver managed SOC, automated internal threat detection, credential monitoring, anti-phishing and more for a truly comprehensive, end-to-end cybersecurity suite that tackles all of today’s modern-day threats. With this acquisition, we’ve doubled down on our security investments to provide our customers with access to experts who can continuously monitor their IT environments without the cost and complexity of disparate tools.”
Added Carl Banzhof, CEO and co-founder, RocketCyber:
“When Billy Austin and I came together to found RocketCyber, our mission was to bring high-end cybersecurity capabilities to the masses and safeguard organizations against the onslaught of cyberattacks and cybercriminals. RocketCyber is the culmination of our combined 50-plus years of experience in creating intrusion detection, vulnerability, risk and compliance technologies. In the end, Kaseya was the clear choice for us with its rich security platform. Now that our products are deeply integrated, MSPs and SMBs can protect themselves against all attack vectors and sleep soundly at night.”
Among the additional details to note:
- RocketCyber will continue to operate as an independent business within Kaseya, led by Banzhof in Dallas, Texas.
- Kaseya SOCs will be located in Dallas, Texas; Miami, Florida; and Dublin, Ireland.
Among the details ChannelE2E still needs to nail down: I'm not sure of RocketCyber's overall MSP installed base, nor do I know if the company builds its own MDR and SOC software, or licenses third-party security software. Stay tuned for potential updates.
MDR and SOCaaS for MSPs
Meanwhile, the managed security services market is evolving in multiple ways to service MSPs in the SMB sector. Key developments to note involve:
- Arctic Wolf is deeply funded and expanding channel operations;
- ConnectWise recently acquired Perch and StratoZen;
- Huntress recently expanded from MDR to EDR (endpoint detection and response);
- Netsurion's MSSP platform recently gained Deep Instinct endpoint protection for MSP partners;
- software companies such as Sophos have evolved toward SOCaaS and MDR for MSPs; and
- venture capitalists as well as private equity firms continue to invest in MDR startups.
Of course, Kaseya also remains on the move. In addition to the RocketCyber acquisition, Kaseya has been preparing for a potential financial event that may involve an IPO. The software company is currently backed by private equity firms Insight Partners and TPG.
Note: The news had been under embargo until 6:00 p.m. ET today (February 23), but details surfaced on the Kaseya and RocketCyber websites ahead of that time. ChannelE2E has therefore published the story.
