Money Moves: June 2020

SDX-central

Originally posted on SDX Central.

Here are some of the most prominent venture capital and merger and acquisition news items from the past month. If you’d like SDxCentral to report on your company’s VC or M&A activity in our monthly Money Moves section, or if you have any tips on that activity, please send the information to Sydney Sawaya (ssawaya@sdxcentral.com).

Microsoft Buys IoT Security Startup CyberX

Microsoft confirmed it acquired IoT security startup CyberX as part of its pledge to invest $5 billion in IoT by 2022. The tech giant didn’t disclose the purchase price, but earlier reports put a $170 million price tag on CyberX.

In a blog post about the acquisition, Microsoft CTO of Cloud and AI Security Michal Braverman-Blumenstyk and Sam George, CVP of cloud and AI Azure IoT, said the acquisition will complement existing Azure IoT security capabilities. It will also give customers visibility into IoT devices that are already connected to their networks and manage security on existing IoT devices.

This is Microsoft’s second IoT-related acquisition this year. In April, it bought Express Logic, a real-time operating system provider for IoT and devices at the edge powered by microcontroller units.

VMware Buys Lastline to Boost Security NDR

VMware acquired security firm Lastline in a move that will add a network detection and response (NDR) component to VMware’s NSX architecture and Carbon Black security platforms. Financial terms of the deal were not released.

Lastline is known for its anti-malware research and artificial intelligence (AI)-powered network detection and response. Its core product is a malware sandbox that can look at every instruction a malware executes to see how it works and then can block different malware iterations. Its platform will be folded into VMware’s NSX portfolio. Lastline will also join with VMware’s Carbon Black Threat Analysis Unit to bolster the vendor’s security offerings.

The purchase came less than a month after VMware acquired Kubernetes-focused security startup Octarine.

Equinix Plots Canadian Expansion With $750M BCE Buy

Equinix inked a deal to acquire 13 data center sites from Canada’s BCE Inc. for $750 million. The colocation giant said the sites represent a total of 25 data center facilities that are expected to generate about $105 million in revenue on an annual basis.

Equinix will gain more than 500 new customers via the BCE acquisition, including large publicly-traded companies in tech, government, and financial services, according to the company. About 100 of BCE’s customers were already working with Equinix.

The deal follows a flurry of activity for Equinix aimed at bolstering its hyperscale strategy and expanding capabilities in edge computing.

Other Money Moves

The Wall Street Journal reported that the Semiconductor Industry Association, a lobbyist group, is proposing $37 billion in subsidies to support the construction of domestic semiconductor fabs, research funding, and aid for states seeking to woo manufacturers.

Champion ONE announced its merger with Approved Networks.

GitLab doubled down on the fuzz buzz and purchased Peach Tech, a security software firm specializing in protocol fuzz testing and dynamic application security testing (DAST) API testing, and Fuzzit, a continuous fuzz testing solution providing coverage-guided testing.

Navisite inked a deal to acquire Privo, a Consulting Partner in the Amazon Web Services (AWS) Partner Network (APN).

Open source distributed SQL database provider Yugabyte raised $30 million in an oversubscribed Series B round led by 8V. The round brings the company’s total funding to $55 million.

Digital.ai doubled down on the acquisitions scooping up Numerify, an artificial intelligence (AI) analytics solutions firm, and Experitest, a continuous quality provider. Financial terms of the transactions were not disclosed.

Zerto bagged $33 million in equity financing, drawing up to $20 million in additional venture debt under an existing credit facility.

Continuous debugging company Lightrun completed a $4 million funding round .ed by Glilot Capital Partners with the participation of leading engineering executives from several fortune 500 firms.

Pre-commercial 5G network equipment for the Chinese market is weighing Ericsson down to the tune of $108.5 million in the current quarter.

Kasada secured a $10 million Series B funding round led by Ten Eleven Ventures.

Zycada, an e-commerce bot boosting service provider, emerged from stealth with $19 million in total funding to date.

Fivetran is the cloud‘s newest unicorn having bagged $100 million in Series C financing and a valuation at more than $1 billion.

Cloud native data security platform provider Open Raven raised a $15 million Series A investment, bringing the company’s total funding to $19.1 million.

Cynet scored $18 million in Series B+ funding from Deutsche Telekom’s strategic investment fund, the Telekom Innovation Pool.

IBM inked a deal to buy cloud security posture management startup Spanugo for an undisclosed amount. Big Blue plans to integrate Spanugo’s software into its public cloud to help meet the security and compliance needs of its customers in regulated industries like banking and health care.

API development platform provider Postman pocketed a $150 million Series C investment rounded by Insight Partners.

Barclays joined Index Ventures in Cutover’s $17 million Series A funding round.

jSonar closed its first institutional round of funding with a $50 million investment from Goldman Sachs.

CloudScale365 acquired eApps Hosting for an undisclosed amount.

API security company Salt Security bagged $20 million in Series A funding led by Tenaya Capital. To date, the company has raised a total of $30 million in equity financing.

Microsoft said it acquired ADRM Software, which provides industry-specific data models for analytics, for an undisclosed amount.

SQL-powered security analytics provider Uptycs announced a $30 million Series B funding round led by Sapphire Ventures.

Mabl secured $6 million in additional funding led by Amplify Partners. Mabl has raised $36 million to date.

Apolicy scored $3.5 million in new funding from StageOne Ventures.

Email security company Area 1 Security raised $25 million in growth funding.

Cisco’s Chief Strategy Officer Anuj Kapur hinted at future merger and acquisition targets to satisfy Cisco’s seemingly endless appetite for smaller technology companies.

CloudBolt acquired SovLabs, a codeless integration technologies provider for hybrid cloud, for an undisclosed amount.

Sinch AB entered into a definitive agreement to acquire ACL Mobile Limited for a total cash consideration of $70 million.

Taiwan Mobile tapped Nokia to be its exclusive vendor for 5G equipment and services in a three-year deal valued at about $450 million.

Automated cloud governance startup Concourse Labs emerged from stealth with $15.2 million in Series A financing led by ForgePoint Capital.

Presto-based analytics company Ahana raised $2.25 million in funding led by GV (formerly Google Ventures) along with participation from Leslie Ventures and other angel investors. Ahana also joined the Linux Foundation’s Presto Foundation.

Contentful completed an $80 million Series E funding round led by Sapphire Ventures. To date, Contentful has raised a total of $158 million in financing.

Data API for client-serverless applications provider Fauna bagged $27 million in new funding led by Madrona Venture Group.

Internap Holding LLC (“INAP”), closed the sale of its data center facilities located in Houston, Texas to an affiliate of the building’s current owner, a subsidiary of Netrality Properties.

Aircall announced a $65 million Series C funding round led by DTCP.

1touch.io secured a $14 million Series A round from National Grid Partners, and Jerusalem Venture Partners. Additional investors include, Connecticut Innovations, Mindset Ventures, and Ocean Azul Partners.

IntelliSite announced the acquisition of Deep Vision AI for an undisclosed amount.

GPU data warehouse startup SQream scored $39.4 million in Series B+ funding led by Mangrove Capital Partners and Schusterman Family Investments. This latest round follows a $26.4 million Series B led by Alibaba Group in 2018.

Kubernetes DevOps tool developer platform Codefresh took $27 million in new funding to the bank.

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