Identity and access management (IdAM) company Bomgar has announced its acquisition to acquire endpoint privilege management company Avecto.
Financial terms of the deal were not disclosed, but Avecto had previously raised $49 million in Series A funding, and last year experienced 51% growth since 2016, when it was considered one of the UK’s potential unicorn companies. Given that, it’s likely that a not-insignificant amount of money has changed hands.
The deal, which is expected to close at the end of the month, will result in a full integration of the two companies and their products.
A comprehensive solution combining two leaders in the space is as exciting as it is crucial to the PAM market.
– Mark Austin, co-founder and co-CEO, Avecto
Both companies emphasised that the acquisition will result in customers (totalling more than 16,000 between the two companies) gaining access to a more complete and streamlined access management solution.
“The combination of Avecto’s and Bomgar’s technology will enable companies to quickly and easily automate critical PAM capabilities while also improving end-users’ ability to do their jobs and support the business,” said Mark Austin, co-founder and co-CEO of Avecto. “We’re thrilled to join the Bomgar family and jointly lead the market in developing solutions that address today’s most pervasive and dangerous challenges.”
In a separate blog post, Austin said: “Our customers have been asking us for session management and vaulting capabilities to complement the Avecto solution. And with Bomgar’s portfolio, those customers will now be able to benefit from a full Privilege Access Management solution […] A comprehensive solution combining two leaders in the space is as exciting as it is crucial to the PAM market.”
Identity and access management solutions have been receiving a lot of attention in the market lately. According to Forrester analysis, 80% of security breaches involve privileged credentials – as the traditional ‘perimeter’-based approach to security becomes less and less relevant, identity-based solutions are becoming increasingly important. Large companies, particularly in the financial services, already have their own dedicated IdAM teams in-house, and investors are taking note of its rapidly growing significance – Thoma Bravo’s recent acquisition of a majority interest in Centrify is a notable example.
“With the addition of Avecto, Bomgar now offers one of the most comprehensive PAM platforms for managing and protecting privileged access,” said Matt Dircks, CEO of Bomgar. “Our companies share a passion for developing security solutions that users love because they’re quick to deploy, intuitive, and don’t impede productivity. We’re excited to combine forces with Avecto’s team, customers, and partners to develop new, innovative ways to mitigate the risks of privileged threats.”