Sophos has entered into a definitive agreement to acquire the commercial software products business of Invincea, a developer of patented advanced next-generation malware protection, from its existing shareholders for $100 million plus a $20 million earn-out.
Sophos expects to rapidly integrate Invincea into the Sophos Central endpoint product line, with the first Sophos products incorporating Invincea’s machine learning technology expected to be available and sold via the global channel of over 26,000 partners in 2017.
Invincea, which recorded billings of $13.4 million in the twelve months to 31 March 2016, represents a significant growth opportunity for Sophos.
Under the terms of the agreement Sophos will pay $100 million in cash immediately on closing (subject to adjustment for net working capital and other customary adjustments) plus up to $20 million in contingent consideration pursuant to a billings-based earn-out linked to growth achieved during the first year of ownership.
Subject to regulatory approval, Sophos expects to complete the Acquisition around the end of the current fiscal year. Sophos will retain the company’s office in Fairfax. Invincea CEO Anup Ghosh will join Sophos as an executive member of the senior management team.
Sophos Chief Executive Officer, Kris Hagerman, commented, “By adding Invincea to our portfolio, Sophos is executing on its vision to assemble the most powerful technologies to provide the very best, cutting-edge defenses for our customers. Invincea is leading the market in machine learning-based threat detection with the combination of superior detection rates and minimal false positives. Invincea will strengthen Sophos’ leading next-gen endpoint protection with complementary predictive defenses that we believe will become increasingly important to the future of endpoint protection and allow us to take full advantage of this significant new growth opportunity. We are proud to welcome the Invincea team to Sophos and look forward to introducing the benefits of this advanced technology to our customers and partners worldwide.”
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