Palo Alto Networks to acquire Expanse in deal worth $800M

Palo Alto Networks has been on buying binge for the last couple of years, and today it added to its haul, announcing a deal to acquire Expanse for $800 million in cash and equity awards. The deal breaks down to $670 million in cash and stock and another $130 million in equity awards to Expanse employees.

Expanse provides a service to help companies understand and protect their attack surface, where they could be most vulnerable to attack. It works by giving the security team a view of how the company’s security profile could look to an attacker trying to gain access.

The plan is to fold Expanse into Palo Alto’s Cortex Suite, an AI-driven set of tools designed to detect and prevent attacks in an automated way. Expanse should provide Palo Alto with a highly valuable set of data to help feed the AI models.

“By integrating Expanse’s attack surface management capabilities into Cortex after closing, we will be able to offer the first solution that combines the outside view of an organization’s attack surface with an inside view to proactively address all security threats,” Palo Alto Networks chairman and CEO Nikesh Arora said in a statement.

Expanse sees the acquisition as a way to accelerate the company road map using the resources of a larger company like Palo Alto, a typical argument from companies being acquired. “Joining forces with Palo Alto Networks will let us achieve our most important business goals years ahead of schedule. During the course of conversations with Palo Alto Networks leadership, we shared optimism that the right combination of technology and people can solve many cybersecurity challenges that to date have seemed intractable,” the startup’s founders wrote in a blog post announcing the deal.

The two co-founders, Dr. Tim Junio and Dr. Matt Kraning, will be joining Palo Alto under the terms of the deal, which is expected to close in Palo Alto’s fiscal second quarter, assuming it passes regulatory muster.

Expanse was founded in 2012 and has raised $130 million, according to Crunchbase data. Its most recent raise was a $70 million Series C last year, which was led by TPG.

Today’s acquisition is Palo Alto’s third in 2020 and the 10th since 2018. Palo Alto stock was up 2.15% in early trading.


By Ron Miller

Adobe acquires marketing workflow startup Workfront for $1.5B

Adobe just announced that it is acquiring marketing workflow management startup Workfront for $1.5 billion. Bloomberg first reported the sale would be happening earlier today.

Workfront was founded back in 2001, making it a bit long in tooth for a private company that has raised $375 million, according to Crunchbase. But it gives Adobe more online marketing tooling to fit into its Experience Cloud. This one helps companies manage complex projects inside the marketing department.

“The combination of Adobe and Workfront will further accelerate Adobe’s leadership in customer experience management, providing a pioneering solution that spans the entire lifecycle of digital experiences, from ideation to activation,” Anil Chakravarthy, executive vice president and general manager for Adobe’s digital experience business and worldwide field operations said in a statement.

Holger Mueller, an analyst at Constellation Research says the acquisition will help Adobe customers manage the complexities of marketing project management. “Scheduling and managing work had gotten orders of mangnitude more complex for enterprises, and Adobe is accounting for that with the acquisition of Workfront, providing better tool support for the new future of work,” Mueller told TechCrunch.

The two companies are actually partners and work together frequently sharing 1000 common customers among Workfront’s 3000 total customer base. In fact, Workfront has APIs that connect to Adobe Creative Cloud and Experience Cloud, two parts of the company’s product family that marketers frequently access. As Adobe battles Salesforce, SAP and Oracle in the marketing automation space, it’s been using its checkbook to acquire additional fire power in recent years.

This acquisition comes after Adobe spent $1.6 billion for Magento and $4.75 billion for Marketo in 2018. That’s almost $8 billion for three companies in under two years, even as it builds out parts of its Adobe Experience Cloud in-house. Combined, it shows just how serious the company is about making headway in this valuable area.

Customer experience has always been an essential element of online and in-person transactions, making sure the customer feels good about the interactions it has with a brand. It not only keeps them coming back, but it encourages them to act as ambassadors on behalf of a company, something that has incredible value.

Conversely a bad experience can lead to the opposite impact, causing a prospective or even loyal customer to abandon a brand and speak badly about it to friends online and in person. Adobe hopes that by bringing another marketing tool into the fold, it can help its customers increase the likelihood of a positive online customer experience. This one should allow company marketing personnel working at a company to move marketing projects through a workflow from idea to online.

The deal is expected to close in the first quarter of Adobe’s fiscal year. Per usual, it will be subject to typical regulatory scrutiny.

This is a breaking story. We will continue to update as we get additional information.


By Ron Miller

Coupa Software snags Llamasoft for $1.5B to bring together spending and supply chain data

Coupa Software, a publicly traded company that helps large corporations manage spending, announced that it was buying Llamasoft, an 18 year old Michigan company that helps large companies manage their supply chain. The deal was pegged at $1.5 billion.

This year Llamasoft released its latest tool, an AI-driven platform for managing supply chains intelligently. This capability in particular seemed to attract Coupa’s attention, as it was looking for a supply chain application to compliment its spend management capabilities.

Coupa CEO and chairman Rob Bernshteyn says when you combine that supply chain data with Coupa’s spending data, it can produce a powerful combination.

“Lamasoft’s deep supply chain expertise and sophisticated data science and modeling capabilities, combined with the roughly $2 trillion of cumulative transactional spend data we have in Coupa, will empower businesses with the intelligence needed to pivot on a dime,” Bernshteyn said in a statement.

The purchase comes at a time when companies are focusing more and more on digitizing processes across enterprise, and when supply chains can be uncertain, depending on the location of COVID hotspots at any particular time.

“With demand uncertainty on one hand, and supply volatility on the other, companies are in need of supply chain technology that can help them assess alternatives and balance trade-offs to achieve desired business results. LLamasoft provides these capabilities with an AI-powered cloud platform that empowers companies to make smarter supply chain decisions, faster,” the company wrote in a statement.

Llamasoft was founded in 2002 in Ann Arbor, Michigan and has raised over $56 million, according to Crunchbase data. Its largest raise was a $50 million Series B in 2015 led by Goldman Sachs.

The company generated more than $100 million in revenue and has 650 big customers including Boeing, DHL, Kimberly-Clark and GM, according to company data.

Coupa has been extremely acquisitive over the years, buying 17 companies, according to Crunchbase data. This deal represents the fourth acquisition this year for the company. So far the stock market is not enamored with the acquisition with the company’s stock price down 5.20% at publication.


By Ron Miller

Twilio wraps $3.2B purchase of Segment after warp speed courtship

It was barely a month ago we began hearing rumors that Twilio was interested in acquiring Segment. The $3.2 billion deal was officially announced three weeks ago, and this morning the communications API company announced that the deal had closed, astonishingly fast for an acquisition of this size.

While we can’t know for sure, the speed with which the deal closed could suggest that it was in the works longer than we had known, and when we began hearing rumors of the acquisition, it could have already been signed, sealed and delivered. In addition, the fact that Twilio CEO Jeff Lawson and Segment CEO Peter Reinhardt knew one another before coming to terms might have helped accelerate the process.

Regardless, the two companies are a nice fit. Both deal with the API economy, providing a set of tools to help developers easily add a particular set of functions to their applications. For Twilio, that’s a set of communications APIs, while Segment focuses on customer data.

When you pull the two sets of tooling together, and combine that with Twilio’s 2018 SendGrid acquisition, you can see the possibility to build more complete applications for interacting with customers at every level including basic communications like video, SMS and audio from Twilio, as well as customer data from Segment and customized emails and ads based on those interactions from SendGrid.

As companies increasingly focus on digital engagement, especially in the midst of a pandemic, Twilio’s Lawson believes the biggest roadblock to this type of engagement has been that data has been locked in silos, precisely the kind of problem that Segment has been attacking.

“With the addition of Segment, Twilio’s Customer Engagement Platform now enables companies to both understand their customer and engage with them digitally — the combination is key to building great digital experiences,” Lawson said in a statement.

In a recent post looking at the reasoning behind the deal, Brent Leary, founder and principal analyst at CRM Essentials saw it this way: “This move allows Twilio to impact the data-insight-interaction-experience transformation process by removing friction from developers using their platform,” Leary explained.

With the deal closed, Segment will become a division of Twilio. Reinhardt will continue to be CEO, and will report directly to Lawson.


By Ron Miller

More chip industry action as Marvell is acquiring Inphi for $10B

It’s been quite a time for chip industry consolidation, and today Marvell joined the acquisition parade when it announced it is acquiring Inphi in a combination of stock and cash valued at approximately $10 billion, according to the company.

Marvell CEO Matt Murphy believes that by adding Inphi, a chip maker that helps connect internal servers in cloud data centers, and then between data centers, using fibre cabling, it will complement Marvell’s copper-based chip portfolio and give it an edge in developing more future-looking use cases where Inphi shines.

“Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade,” Murphy said in a statement.

In the classic buy versus build calculus, this acquisition uses the company’s cash to push it in new directions without having to build all this new technology. “This highly complementary transaction expands Marvell’s addressable market, strengthens customer base and accelerates Marvell’s leadership in hyperscale cloud data centers and 5G wireless infrastructure,” the company said in a statement.

It’s been a busy time for the chip industry as multiple players are combining hoping for a similar kind of lift that Marvell sees with this deal. In fact, today’s announcement comes in the same week AMD announced it was acquiring Xilinx for $35 billion and follows Nvidia acquiring ARM for $40 billion last month. The three deals combined come to a whopping $85 billion.

There appears to be prevailing wisdom in the industry that by combining forces and using the power of the checkbook, these companies can do more together than they can by themselves.

Certainly Marvell and Inphi are suggesting that. As they highlighted, their combined enterprise value will be more than $40 billion with hundreds of millions of dollars in market potential. All of this of course depends on how well these combined entities work together and we won’t know that for some time.

For what it’s worth, the stock market appears unimpressed with the deal with Marvell’s stock down over 7% in early trading, but Inphi stock is being bolstered in a big way by the announcement, up almost 23% this morning so far.

The deal, which has been approved by both companies’ boards, is expected to close by the second half of 2021 subject to shareholder and regulatory approval.


By Ron Miller

Qualtrics CEO Ryan Smith is buying majority stake in the Utah Jazz for $1.6B

The Utah Jazz, an NBA basketball team based in Salt Lake City, announced today that Qualitrics CEO and co-founder Ryan Smith was buying a majority stake in the team along other properties. ESPN is reporting the deal is worth $1.6 billion.

Smith can afford it. He sold Qualtrics, which is based in Provo, Utah, in 2018 to SAP for $8 billion just before the startup was about to go public. Earlier this year, SAP announced plans to spin out Qualtrics as public company.

In addition to The Jazz, he’s also getting Vivint Arena, the National Basketball Association (NBA) G League team Salt Lake City Stars and management of the Triple-A baseball affiliate Salt Lake Bees. Smith is buying the properties from the Miller family, who have run them for three decades.

Smith was over the moon about being able to buy into a franchise he has supported over the years. “My wife and I are absolutely humbled and excited about the opportunity to take the team forward far into the future – especially with the greatest fans in the NBA. The Utah Jazz, the state of Utah, and its capital city are the beneficiaries of the Millers’ tremendous love, generosity and investment. We look forward to building upon their lifelong work,” he said in a statement.

The deal is pending approval of the NBA Board Governors, but once that happens, Smith will have full decision making authority over the franchise. He is not the first tech billionaire to buy a basketball team.

Qualtrics, which makes customer survey tools, was founded in 2002 and raised over $400 million from firms like Accel, Insight Partners and Sequoia before selling the company two years ago to SAP.

Smith is not the first tech billionaire to buy a basketball team. He joins Mark Cuban, who bought the Dallas Mavericks in 1999 after selling Broadcast.com to Yahoo for $5.7 billion that same year. Former Microsoft CEO Steve Ballmer bought the Los Angeles Clippers in 2014 for $2 billion.


By Ron Miller

AMD grabs Xilinx for $35 billion as chip industry consolidation continues

The chip industry consolidation dance continued this morning as AMD has entered into an agreement to buy Xilinx for $35 billion, giving the company access to customers requiring chips with high performance workloads like artificial intelligence.

AMD sees this deal as combining two companies that complement each other’s strengths without cannibalizing its own markets. CEO Lisa Su believes the acquisition will help make her company the high performance chip leader.

“By combining our world-class engineering teams and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing,” Su said in a statement.

In an article earlier this year, TechCrunch’s Darrell Etherington described Xilinx new satellite focused chips as offering a couple of industry firsts:

It’s the first 20nm process that’s rated for use in space, offering power and efficiency benefits, and it’s the first to offer specific support for high performance machine learning through neural network-based inference acceleration.

What’s more, the chips are designed to handle radiation and the rigors of launch, using a thick ceramic packaging.

In a call with analysts this morning, Su pointed to these kinds of specialized workloads as one of Xilinx’s strengths. “Xilinx has also built deep strategic partnerships across a diverse set of growing markets in 5G communications, data center, automotive, industrial, aerospace and defense. Xilinx is establishing themselves as a strategic technology partner to a broad set of industry leaders,” she said.

In a nod to shareholders of both companies, she said, “This is truly a compelling combination that will create significant value for all stakeholders, including AMD and Xilinx shareholders who will benefit from the future growth and upside potential of the combined company.”

So far stockholders aren’t impressed with AMD stock down over 4% in pre-trading, while Xilinx stock is up over 11% in pre-trading.  Xilinx has a market cap over $28 billion compared with AMD’s $96.5 billion, creating a massive combined company.

This deal comes on the heels of last month’s ARM acquisition by Nvidia for $40 billion. With two deals in less than two months totaling $75 million, the industry is looking at the bigger is better theory. Meanwhile Intel took a hit earlier this month after its earnings report showed weakness in its data center business.

While the deal has been approved by both company’s boards of directors, it still has to pass muster with shareholders and regulators, and is not expected to close until the end of next year.

When that happens Su will be chairman of the combined company, while Xilinx president and CEO, Victor Peng, will join AMD as president, where he will be in charge of the Xilinx business and strategic growth initiatives.


By Ron Miller

Juniper Networks acquires Boston-area AI SD-WAN startup 128 Technology for $450M

Today Juniper Networks announced it was acquiring smart wide area networking startup 128 Technology for $450 million.

This marks the second AI-fueled networking company Juniper has acquired in the last year and a half after purchasing Mist Systems in March 2019 for $405 million. With 128 Technology, the company gets more AI SD-WAN technology. SD-WAN is short for software-defined wide area networks, which means networks that cover a wide geographical area such as satellite offices, rather than a network in a defined space.

Today, instead of having simply software-defined networking, the newer systems use artificial intelligence to help automate session and policy details as needed, rather than dealing with static policies, which might not fit every situation perfectly.

Writing in a company blog post announcing the deal, executive vice president and chief product officer Manoj Leelanivas sees 128 Technology adding great flexibility to the portfolio as it tries to transition from legacy networking approaches to modern ones driven by AI, especially in conjunction with the Mist purchase.

“Combining 128 Technology’s groundbreaking software with Juniper SD-WAN, WAN Assurance and Marvis Virtual Network Assistant (driven by Mist AI) gives customers the clearest and quickest path to full AI-driven WAN operations — from initial configuration to ongoing AIOps, including customizable service levels (down to the individual user), simple policy enforcement, proactive anomaly detection, fault isolation with recommended corrective actions, self-driving network operations and AI-driven support,” Leelanivas wrote in the blog post.

128 Technologies was founded in 2014 and raised over $97 million, according to Crunchbase data. Its most recent round was a $30 million Series D investment in September 2019 led by G20 Ventures and The Perkins Fund.

In addition to the $450 million, Juniper has asked 128 Technology to issue retention stock bonuses to encourage the startup’s employees to stay on during the transition to the new owners. Juniper has promised to honor this stock under the terms of the deal. The deal is expected to close in Juniper’s fiscal fourth quarter subject to normal regulatory review.


By Ron Miller

Twilio is buying customer data startup Segment for between $3B and $4B

Sources have told TechCrunch that Twilio intends to acquire customer data startup Segment for between $3 and $4 billion. Forbes broke the story on Friday night, reporting a price tag of $3.2 billion.

We have heard from a couple of industry sources that the deal is in the works and could be announced as early as Monday.

Twilio and Segment are both API companies. That means they create an easy way for developers to tap into a specific type of functionality without writing a lot of code. As I wrote in a 2017 article on Segment, it provides a set of APIs to pull together customer data from a variety of sources:

Segment has made a name for itself by providing a set of APIs that enable it to gather data about a customer from a variety of sources like your CRM tool, customer service application and website and pull that all together into a single view of the customer, something that is the goal of every company in the customer information business.

While Twilio’s main focus since it launched in 2008 has been on making it easy to embed communications functionality into any app, it signaled a switch in direction when it released the Flex customer service API in March 2018. Later that same year, it bought SendGrid, an email marketing API company for $2 billion.

Twilio’s market cap as of Friday was an impressive $45 billion. You could see how it can afford to flex its financial muscles to combine Twilio’s core API mission, especially Flex, with the ability to pull customer data with Segment and create customized email or ads with SendGrid.

This could enable Twilio to expand beyond pure core communications capabilities and it could come at the cost of around $5 billion for the two companies, a good deal for what could turn out to be a substantial business as more and more companies look for ways to understand and communicate with their customers in more relevant ways across multiple channels.

As Semil Shah from early stage VC firm Haystack wrote in the company blog yesterday, Segment saw a different way to gather customer data, and Twilio was wise to swoop in and buy it.

Segment’s belief was that a traditional CRM wasn’t robust enough for the enterprise to properly manage its pipe. Segment entered to provide customer data infrastructure to offer a more unified experience. Now under the Twilio umbrella, Segment can continue to build key integrations (like they have for Twilio data), which is being used globally inside Fortune 500 companies already.

Segment was founded in 2011 and raised over $283 million, according to Crunchbase data. Its most recent raise was $175 million in April on a $1.5 billion valuation.

Twilio stock closed at $306.24 per share on Friday up $2.39%.

Segment declined to comment on this story. We also sent a request for comment to Twilio, but hadn’t heard back by the time we published.  If that changes, we will update the story.


By Ron Miller

SAP continues to build out customer experience business with Emarsys acquisition

SAP seemed to be all in on customer experience when it acquired Qualtrics for $8 billion in 2018. It continued on that journey today when it announced it was acquiring Austrian cloud marketing company Emarsys for an undisclosed amount of money.

Emarsys, which raised over $55 million, according to PitchBook data, gives SAP customer personalization technology. If you talk to any marketing automation vendor over the last several years, the focus has been on using a variety of data and touch points to understand the customer better, and deliver more meaningful online experiences.

With the pandemic closing or limiting access to brick and mortar stores, personalization has taken a new urgency as customers are increasingly shopping online and companies need to meet them where they are.

With Emarsys, the company is getting an omnichannel marketing solution that they say is designed to deliver messages to customers wherever they are including e-mail, mobile, social, SMS, and the web, and deliver that at scale.

When SAP announced it was spinning out Qualtrics a couple of months ago, just 20 months after buying, it left some question about whether SAP was fully committed to customer experience business.

Brent Leary, founder and principal analyst at CRM Essentials says that the acquisition shows that SAP is still very much in the game. “This illustrates that SAP is serious about CX and competing in a highly competitive space. Emarsys adds industry-specific customer engagement capabilities that should help SAP CX customers accelerate their efforts to provide their customers with the experiences they expect as their needs change over time,” Leary told TechCrunch.

As an ERP company at its core, SAP has traditionally focused on back office kind of operations, but Bob Stutz, president, SAP Customer Experience sees this acquisition as a way to continue bringing back office and front office operations together.

“With Emarsys technology, SAP Customer Experience solutions can link commerce signals with the back office and activate the preferred channel of the customer with a relevant and consistently personalized message, allowing customers the freedom to choose their own engagement,” Stutz said in a statement.

The company, which is based in Austria, was founded back in 2000 when marketing was a very different world. It has built a customer base of 1500 companies with 800 employees in 13 offices across the globe. All of this will become part of SAP, of course and come under Stutz’s purview.

As with all transactions of this type it will be subject to regulatory approval, but the deal is expected to close this quarter.


By Ron Miller

Progress snags software automation platform Chef for $220M

Progress, a Boston area developer tool company, boosted its offerings in a big way today when it announced it was acquiring software automation platform Chef for $220 million.

Chef, which went 100% open source last year, had annual recurring revenue (ARR) of $70 million from the commercial side of the house. Needless to say, Progress CEO Yogesh Gupta was happy to bring the company into the fold and gain not only that revenue, but a set of highly skilled employees, a strong developer community and an impressive customer list.

Gupta said that Chef fits with his company’s acquisition philosophy. “This acquisition perfectly aligns with our growth strategy and meets the requirements that we’ve previously laid out: a strong recurring revenue model, technology that complements our business, a loyal customer base and the ability to leverage our operating model and infrastructure to run the business more efficiently,” he said in a statement.

Chef CEO Barry Crist offered a typical argument for an acquired company, that Progress offered  a better path to future growth, while sending a message to the open source community and customers that Progress would be a good steward of the startup’s vision.

“For Chef, this acquisition is our next chapter, and Progress will help enhance our growth potential, support our Open Source vision, and provide broader opportunities for our customers, partners, employees and community,” Crist said in a statement.

Chef’s customer list is certainly impressive including tech industry stalwarts like Facebook, IBM and SAP, as well as non-tech companies like Nordstrom, Alaska Airlines and Capital One.

The company was founded in 2008 and had raised $105 million. according to Crunchbase data. It hadn’t raised any funds since 2015 when it raised a $40 million Series E led by DFJ Growth. Other investors along the way included Battery Ventures, Ignition Partners and Scale Venture Partners.

The transaction is expected to close next month pending normal regulatory approvals.


By Ron Miller

Cisco acquiring BabbleLabs to filter out the lawn mower screeching during your video conference

We’ve all been in a video conference, especially this year, when the neighbor started mowing the lawn or kids were playing outside your window — and it can get pretty loud. Cisco, which owns the WebEx video conferencing service wants to do something about that, and late yesterday it announced it was going to acquire BabbleLabs, a startup that can help filter out background noise.

BabbleLabs has a very particular set of skills. It uses artificial intelligence to enhance the speaking voice, while filtering out those unwanted background noises that seem to occur whenever you happen to be in a meeting.

Interestingly enough, Cisco also sees this as a kind of privacy play by removing background conversation. Jeetu Patel, senior vice president and general manager in the Cisco Security and Applications Business Unit, says that this should go a long way toward improving the meeting experience for Cisco users.

“Their technology is going to provide our customers with yet another important innovation — automatically removing unwanted noise — to continue enabling exceptional Webex meeting experiences,” Patel, who was at Box for many years before joining Cisco recently, said in a statement.

In a blog post, BabbleLabs CEO and co-founder Chris Rowen wrote that conversations about being acquired by Cisco began just recently, and the deal came together pretty quickly. “We quickly reached a common view that merging BabbleLabs into the Cisco Collaboration team could accelerate our common vision dramatically,” he wrote.

BabbleLabs, which launched three years ago and raised $18 million, according to Crunchbase, had an interesting, but highly technical idea. That can sometimes be difficult to translate into a viable commercial product, but makes a highly attractive acquisition target for a company like Cisco.

Brent Leary, founder and principal analyst at CRM Essentials, says this acquisition could be seen as part of a broader industry consolidation. “We’re seeing consolidation taking place as the big web conferencing players are snapping up smaller players to round out their platforms,” he said.

He added, “WebEx may not be getting the attention that Zoom is, but it still has a significant presence in the enterprise, and this acquisition will allow them to keep improving their offering,”

The deal is expected to close in the current quarter after regulatory approval. Upon closing, BabbleLabs employees will become part of Cisco’s Collaboration Group.


By Ron Miller

Palo Alto Networks to buy digital forensics consulting firm for $265M

It’s been quite a day in the tech world with a bushel of S-1s being filed to go public. Not to be left out the ever acquisitive Palo Alto Networks announced its intent to acquire The Crypsis Group, an incident response, risk management and digital forensics consulting firm for a crisp $265 million.

Nikesh Arora, chairman and CEO at Palo Alto Networks sees a company that builds on the foundation of services the cybersecurity giant already provides, giving customers a set of services to lean on when a breach happens.

“By joining forces, we will be able to help customers not only predict and prevent cyberattacks but also mitigate the impact of any breach they may face,” he said. While the kinds of tools that Palo Alto provides are designed to prevent attacks, the fact is no set of tools is fool proof, and it’s always going to be a cat and mouse game between companies like Palo Alto and the attackers trying to breach their defenses.

Crypsis can help figure out how a breach happened and ways to close up the cracks in the foundation to prevent access through that particular weak point in the future. “We have dedicated ourselves to creating a more secure world through the fight against cybercrime. Together with Palo Alto Networks, we will be able to help businesses and governments better respond to threat actors on a global scale,” Bret Padres, CEO of The Crypsis Group said in a statement.

When the deal closes, and The Crypsis Group is in the fold, Palo Alto will gain more than 150 highly trained consultants, who have been handling approximately 1300 incidents a year. This gives Palo Alto some serious consulting fire power to deal with those times when attackers get through their defenses.

The Crypsis Group has up until now been part of a larger security consultancy called ZP Group. The deal is expected to close in the fiscal first quarter of 2021, which just started when Q42020 closed today. Per usual, the acquisition will be subject to regulatory scrutiny as Palo Alto is a public company.


By Ron Miller

Harness makes first acquisition, snagging open source CI company Drone.io

Harness has made a name for itself creating tools like continuous delivery (CD) for software engineers to give them the kind of power that has been traditionally reserved for companies with large engineering teams like Google, Facebook and Netflix. Today, the company announced it has acquired Drone.io, an open source continuous integration (CI) company, marking the company’s first steps into open source, as well as its first acquisition.

The companies did not share the purchase price.

“Drone is a continuous integration software. It helps developers to continuously build, test and deploy their code. The project was started in 2012, and it was the first cloud native, container native continuous integration solution on the market, and we open sourced it,” company co- founder Brad Rydzewski told TechCrunch.

Drone delivers pipeline configuration information as code in a Docker container. Image: Drone.io

While Harness had previously lacked a CI tool to go with its continuous delivery tooling, founder and CEO Jyoti Bansal said this was less about filling in a hole than expanding the current platform.

“I would call it an expansion of our vision and where we were going. As you and I have talked in the past, the mission of Harness is to be a next generation software delivery platform for everyone,” he said. He added that buying Drone had a lot of upside.”It’s all of those things — the size of the open source community, the simplicity of the product — and it [made sense], for Harness and Drone to come together and bring this integrated CI/CD to the market.”

While this is Harness’ first foray into open source, Bansal says it’s just the starting point and they want to embrace open source as a company moving forward. “We are committed togetting more and more involved in open source and actually making even more parts of Harness, our original products, open source over time as well,” he said.

For Drone community members who might be concerned about the acquisition, Bansal said he was “100% committed” to continuing to support the open source Drone product. In fact, Rydzewski said he wanted to team with Harness because he felt he could do so much more with them than he could have done continuing as a stand-alone company.

“Drone was a growing community, a growing project and a growing business. It really came down to I think the timing being right and wanting to partner with a company like Harness to build the future. Drone laid a lot of the groundwork, but it’s a matter of taking it to the next level,” he said.

Bansal says that Harness intends to also offer a commercial version of Drone with some enterprise features on the Harness platform, even while continuing to support the open source side of it.

Drone was founded in 2012. The only money it raised was $28,000 when it participated in the Alchemist Accelerator in 2013, according to Crunchbase data. The deal has closed and Rydzewski has joined the Harness team,


By Ron Miller

Cisco acquires Modcam to make Meraki smart camera portfolio even smarter

As the Internet of Things proliferates, security cameras are getting smarter. Today, these devices have machine learning capability that helps the camera automatically identify what it’s looking at — for instance, an animal or a human intruder? Today, Cisco announced that it has acquired Swedish startup Modcam and is making it part of its Meraki smart camera portfolio with the goal of incorporating Modcam computer vision technology into its portfolio.

The companies did not reveal the purchase price, but Cisco tells us that the acquisition has closed.

In a blog post announcing the deal, Cisco Meraki’s Chris Stori says Modcam is going to up Meraki’s machine learning game, while giving it some key engineering talent, as well.

“In acquiring Modcam, Cisco is investing in a team of highly talented engineers who bring a wealth of expertise in machine learning, computer vision and cloud-managed cameras. Modcam has developed a solution that enables cameras to become even smarter,” he wrote.

What he means is that today, while Meraki has smart cameras that include motion detection and machine learning capabilities, this is limited to single camera operation. What Modcam brings is the added ability to gather information and apply machine learning across multiple cameras, greatly enhancing the camera’s capabilities.

“With Modcam’s technology, this micro-level information can be stitched together, enabling multiple cameras to provide a macro-level view of the real world,” Stori wrote. In practice, as an example, that could provide a more complete view of space availability for facilities management teams, an especially important scenario as businesses try to find safer ways to open during the pandemic. The other scenario Modcam was selling was giving a more complete picture of what was happening on the factory floor.

All of Modcams employees, which Cisco described only as “a small team,” have joined Cisco, and the Modcam technology will be folded into the Meraki product line, and will no longer be offered as a standalone product, a Cisco spokesperson told TechCrunch.

Modcam was founded in 2013 and has raised $7.6 million, according to Crunchbase data. Cisco acquired Meraki back in 2012 for $1.2 billion.


By Ron Miller