Cybersecurity provider Rapid7 reportedly exploring a sale

Rapid7 Inc., a publicly traded supplier of vulnerability detection and remediation software program, is reportedly exploring a sale.

Reuters reported the event on Wednesday, citing individuals aware of the matter. Rapid7 is claimed to have obtained takeover curiosity from a number of potential consumers together with non-public fairness corporations. Over the previous few quarters, non-public fairness corporations have acquired a number of different main cybersecurity corporations in offers collectively price over $12 billion.

Reuters’ sources cautioned that Rapid7’s discussions with potential consumers are in an early stage and will not result in a deal. However, shares of the corporate jumped greater than 20% on the report. 

Boston-based Rapid7 sells software program that organizations use to detect and repair vulnerabilities of their know-how infrastructure. It went public on the Nasdaq inventory alternate in 2015 after beforehand elevating $89 million from buyers. The corporate has greater than 10,700 clients worldwide, together with Autodesk Inc., Qlik Applied sciences Inc. and different main enterprise know-how suppliers.

Rapid7’s product portfolio features a platform known as InsightAppSec that launches simulated hacking makes an attempt in opposition to purposes to detect vulnerabilities. In keeping with the corporate, the platform can detect dozens of frequent software vulnerabilities. It additionally sells a device for detecting insecure configuration settings in public cloud environments and Kubernetes clusters.

Alongside the vulnerability detection section, Rapid7 has a presence in a number of different components of the cybersecurity market. It gives a menace intelligence service that gives corporations with knowledge about hacker exercise. It additionally provides a SIEM, or safety data and occasion administration, platform that permits directors to centrally monitor a number of sorts of know-how programs for breach indicators.

Rapid7 generated revenues of $176 million within the third quarter, a 26% improve from the identical time a 12 months earlier. The corporate’s buyer base grew 9% year-over-year, whereas annualized recurring income per buyer jumped 14%. It additionally achieved an adjusted revenue of $13 million in the course of the quarter.

In November, the corporate projected that it could finish the final three months of 2022 with quarterly revenues of between $179 million and $181 million. it additionally forecast an adjusted revenue of $14 million to $16 million. 

Rapid7’s reported discussions with potential consumers comply with a 12 months during which a number of publicly traded cybersecurity suppliers opted to go non-public. A number of of these acquisitions concerned non-public fairness corporations. 

Final April, Thoma Bravo agreed to accumulate cybersecurity supplier SailPoint Applied sciences Holdings Inc. in a $6.9 billion deal. A number of months later, the non-public fairness agency paid $2.3 billion to buy ForgeRock Inc., which develops software program for regulating person entry to purposes. Vista Fairness Companions acquired cybersecurity coaching supplier KnowBe4 Inc. across the similar time for $4.6 billion. 

Picture: Rapid7