Amazon is in advanced talks to acquire Massachusetts-based cybersecurity software company Sqrrl Data Inc. for just over million, according to Axios. The report further suggests that deal has not yet been finalized. Also, neither Amazon nor Sqrrl immediately responded to a request for comment on the report.
The news comes just a few months after the cybersecurity startup raised more than $12 million in its series C round funding led by Boston-based Spring Lake Equity Partners, and earlier investors Matrix Partners and Accomplice, bringing its lifetime investment to $28.5 million.
Founded in 2012 by ex-National Security Agency computer scientists, Sqrrl makes secure database software that helps companies and institutions in finance, healthcare, and other sectors manage huge amounts of data and build applications on top of that data.
Looking for broader markets, the company pivoted into offering a broader enterprise-focused threat protection service called Sqrrl Enterprise. That platform offers console-based threat investigation tools which allow users to map systems and files involved in a given breach. It is said to enable security analysts to discover advanced threats faster and reduce the time required to investigate them by delivering united link analysis, User and Entity Behavior Analytics and multipetabyte scalability capabilities within the console.
Why does Amazon want to acquire?
Sqrrl analyzes big data to hunt cyber-threats, helping companies identify and address them faster. The company has about half a dozen “anchor clients” among the Fortune 50 largest companies.
On the other side, Amazon Web Services, which controls a huge share of the market for cloud computing services, is listed as a technology partner on Sqrrl’s website. Just a few weeks ago, Amazon Web Services made its first major foray into cybersecurity, releasing its own threat-detection product. Hence, it would appear that Sqrrl’s technology is well-suited to bolstering that offering.
If the acquisition is announced before the end of the month, it will cap off a year that has seen multiple acquisitions in cybersecurity as the market itself has begun to consolidate around bigger, multifaceted players.
Amazon itself acquired data security startup Harvest.ai Inc. in January, which it then used as the basis for its Macie cloud security product later this year. Other notable acquisitions in a busy acquisition market this year include Symantec Corp. picking up Skycure Ltd., Palo Alto Networks Inc.’s acquisition of LightCyber Ltd., Barracuda Networks Inc. going private in a $1.6 billion deal with private equity firm Thoma Bravo LLC and Trend Micro Inc.’s acquisition of Immunio Inc.