JFrog acquires Vdoo for $300M
At a Glance
JFrog, a DevOps platform, paid $300 million for Vdoo. The purchase will be made using a mix of cash and stock. Vdoo will remain a distinct SaaS offering for the time being, according to JFrog. New updates will aid in support of the JFrog platform, and by 2022, the two businesses will have a completely integrated solution.
JFrog, a DevOps platform, has acquired Vdoo, an AI-based integrated security platform for connected, IoT, and embedded devices. The acquisition, which is a combination of cash and shares, is estimated to be worth $300 million, according to JFrog.
JFrog is a publicly listed company on Nasdaq, where it first went public in September and now has a market capitalization of $4.65 billion. Meanwhile, Vdoo had collected around $70 million from investors like NTT, Dell, GGV, and Verizon. Its valuation is between $100 million and $200 million after its most recent fundraising round.
Shlomi Ben Haim, JFrog’s co-founder, and CEO explained that the business’s decision to focus more on security, and the purchase of this company, in particular, to round out that plan, are a logical development in the company’s goal to build out an end-to-end platform for the DevOps team.
“When we started JFrog, the main challenge was to educate the market on what we saw as the most important priorities when it comes to building, testing, and deploying software.” Then, he claims, around 2015-2016, they began to notice a fault in the system, a breach called security. Because developers grew too quickly, the work they were doing unwittingly led to several security vulnerabilities, InfoSec engineers and developers may operate at cross purposes.Shlomi Ben Haim, JFrog’s co-founder, and CEO
Since then, JFrog has been developing many solutions, such as its X-ray product, to solve this and bring the various objectives together. Vdoo isn’t JFrog’s first effort into security, but it is a big step forward in understanding the hardware and systems powered by software.
While JFrog has created many of its businesses from the bottom up, it has also acquired many technologies. In this example, Netanel Davidi, co-founder and CEO of Vdoo, said it was a good fit because the two businesses’ work methods are essentially similar.
“In terms of the fit between the companies, it’s about our approach to binaries. That’s only the way to cover the entire pipeline from the very beginning, when they go, you develop something, all the way to the device or the server or the application or the mobile phone. That’s the only way to understand the context and contextual risk truly.”Mr. Davidi added
He also mentioned the talent that would be added due to the acquisition; 100 people from Vdoo will join JFrog’s 800 employees.
“If JFrog chose to build something like this themselves, they could have done it. But the uniqueness here is that we have built the best security team, the best security researchers, the best vulnerability researchers, the best reverse engineers, which focus not only on embedded systems, and IoT, which is considered to be the hardest thing to learn and to analyze, but also in software artifacts. We are bringing this knowledge along with us.”Mr. Davidi added
Vdoo will remain a separate SaaS product for the time being, according to JFrog. The updates will help support the JFrog platform, and the two companies will have a fully integrated solution by 2022.