Fortinet has announced the completion of its acquisition of cloud security pioneer Lacework, a move set to significantly bolster its cybersecurity platform.
Forrester analysts estimate the acquisition to be valued between $200 million and $230 million, a fraction of the $1.8 billion in funding Lacework has raised since its inception in 2015. Once a top-valued cybersecurity unicorn, Lacework was valued at $8.3 billion in 2021.
Lacework, the third company to emerge from Sutter Hill Ventures, had faced challenges, including a 20 per cent staff reduction in May 2022, just months after a $1.3 billion funding round. At its peak, Lacework employed over 1,000 people.
Forrester’s estimates suggest Lacework’s annual recurring revenue (ARR) ranged between $70 million and $90 million, significantly lower than rival Wiz, which reported $350 million in ARR earlier this year.
Fortinet’s acquisition aims to enhance its multicloud-capable cloud and application security solutions.
CEO Ken Xie stated that the merger would create the most comprehensive, full-stack AI-driven cloud security platform available from a single vendor.
The deal includes Lacework’s advanced technology, supported by 225 patents and patent applications related to cloud security and AI. Fortinet plans to integrate Lacework’s capabilities into its Unified SASE (secure access service edge) offering.
Lacework’s former CEO, Jay Parikh, who joined from Facebook in 2021, is not mentioned in the acquisition announcement. His LinkedIn profile indicates his tenure at Lacework ended in July.
This acquisition marks a significant step for Fortinet in expanding its cybersecurity capabilities and offering enhanced protection to its customers.
