At a glance.
- SentinelOne shuts down rumors of a sale.
- Rubrik and Arm aim for IPOs.
- Labor market cross-currents.
Mergers and acquisitions.
Reuters, citing "people familiar with the matter," said on August 21st that publicly traded cybersecurity firm SentinelOne was considering a sale to a private equity firm. By midweek the rumors had shifted, with reports that Wiz was considering a bid for SentinelOne. CTech elaborated on the rumors with a report that "SentinelOne will not agree to a deal for less than $18-20 per share, equating to around $6 billion and 25% above the current value." These rumors may not have been welcome at SentinelOne, which, Bloomberg reported, terminated its six-month-old strategic partnership with Wiz. A SentinelOne representative emailed Bloomberg on Wednesday, “We terminated our re-sell agreement with Wiz as a result of their continued lack of execution against their commitments. The Wiz partnership has not been material to our business.” Last Friday, however, SentinelOne clarified that the partnership was still in place, and only the reselling agreement had been cancelled.
CTech says that SentinelOne would prefer acquisition by either a fund or a large, diversified corporation. But late Friday afternoon CNBC reported that SentinelOne CEO Tomer Weingarten said the company was not for sale, but instead was “focused on our individual path.”
Globes reports that Tenable is in "advanced talks" to acquire Israeli cloud security firm Ermetic for approximately $350 million.
Investments and exits.
London-based chip giant Arm is looking to raise nearly $5 billion in its IPO later this month, CNN reports. The IPO is expected to value the company at up to $52.3 billion, with its current owner SoftBank continuing to hold about 90% of its shares.
SeekingAlpha reports that data protection company Rubrik is aiming for an IPO later this year. Bloomberg cites sources as saying the company could sell between $500 million and $700 million worth of shares in the offering.
Illumio has hired John Lens as Chief Revenue Officer.
Infoblox has hired Mukesh Gupta as Chief Product Officer.
Pax8 has appointed Mary Gill as Chief Compliance Officer.
Vortex 6 has hired Andy Macleod as VP Customer Experience EMEAR.
Cynet has named Douglas Brockett as Executive Chairman.
Aryaka has appointed Shailesh Shukla to its board of directors as Executive Chairman.
Qrypt has added Christopher Moretti to its board of advisors. Moretti currently serves as vice president of global technology and cloud transformation at Evernorth Health Services.
Malwarebytes has laid off one-hundred employees ahead of a major restructuring that will separate the company into two business units, TechCrunch reports. Cybernews offers a summary of recent layoffs at other cybersecurity firms, including Fortinet, Veriff, and Secureworks. Data from Layoffs.fyi Cybernews cites show that "at least 46 cybersecurity companies have laid off 4738 employees since the start of 2023." The numbers are believed to be low, since not all companies report layoffs.
Even with layoffs, companies continue to report shortfalls of cyber workers. TechTarget’s Enterprise Strategy Group (ESG) and the Information Systems Security Association (ISSA) have published research looking at the cybersecurity workforce, finding that the majority of cybersecurity workers said their jobs have grown more difficult over the past two years. The problems about two-thirds of those surveyed report are both internal and external to their organizations. Externally, a more challenging set of threats and more onerous regulatory regimes have made the job tougher. Internally, workers say staffing shortages, parsimonious budgets, and workload complexity have combined to increase the burdens at work and have made their careers more difficult.
71% of organizations say they've been affected by a shortage of workers with cybersecurity skills, and that, the report says, represents "a dramatic increase from 57% in the last study." The labor shortage has increased cybersecurity team workloads and contributed to a high rate of staff burnout. Organizations say that they have the most difficulty finding people qualified to work in application security, cloud security, and security analysis and investigations.