Thursday 22 March 2018

US giant buys UCD spinout Logentries in $68m deal

Gavin McLoughlin

Gavin McLoughlin

Logentries, a data company spun out of University College Dublin in 2010, has been bought by US security analytics company Rapid7 for $68m.

Logentries makes data search technology that Rapid7 will use to help customers deal with security problems more effectively. The company is the brainchild of Dr Viliam Holub and Dr Trevor Parsons and Corey Thomas and was founded out of UCD's Performance Engineering Laboratory in its School of Computer Science. Two years ago it completed a $10m funding round backed by investors including Shay Garvey's Fontline Ventures.

Its clients include fitness company Crossfit and Fieldaware.

The deal with Nasdaq-listed Rapid7 consists of $36m in cash and $32m of Rapid7 shares. Around $21m of Rapid7 shares have been granted to 39 Logentries employees who joined either Rapid7 or one of its subsidiaries as part of the deal.

Next year Rapid7 expects the transaction to add $4m-$5m to its revenue and increase earnings per share from 2017.

Logentries is headquartered in Boston and has a research and development team in Dublin. Rapid7 said it would continue to invest in Logentries' Irish presence and "build this team".

"The disruptive combination of Rapid7's industry-leading data collection and security analytics and Logentries' compelling machine data search technology, enables customers to better understand and quickly respond to risk in their IT environment," Rapid7 president and chief executive Corey Thomas said.

"This is a natural progression of our security data and analytics platform, complementing our value proposition and accelerating our time to market."

Rapid7 said the Irish firm's "innovative technology provides a powerful cloud-based solution for searching, visualizing, and analysing machine data and logs.

"Built-in tagging, alerting, and reporting make it easy for customers to maintain a proactive view of their environment and identify anomalous events."

Logentries chief executive Andrew Burton said Rapid7's "leading position in the security data and analytics market gives us the opportunity to reach an evolving and expanding market that is looking for lower-cost access to machine data, along with advanced security data collection and analytics."

Logentries serves more than 3,000 customers in over 65 countries across a diverse set of industries.

Logentries has approximately 70 employees, nearly all of whom joined Rapid7, including all of the engineering and development professionals in Dublin.

UCD vice-president for Research, Innovation and Impact Orla Feely congratulated Logentries.

Ms Feely said she was looking forward "to seeking opportunities to develop mutually beneficial partnerships between Rapid7 and UCD in areas of research, innovation and providing access to our pool of talented graduates."

Since Logentries was established in 2010 it has been supported through NovaUCD, the University's centre for new ventures and entrepreneurs. It won the NovaUCD Start-Up Company of the Year Award in 2010.

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