Rapid7 Acquires Logentries; Adds Machine Data Search to Its Leading Security Data and Analytics Platform
(Thomson Reuters ONE) -
New Search and Forensics Capabilities Complement Rapid7's Existing Intruder
Analytics Offerings for Incident Detection and Response
BOSTON, Oct. 13, 2015 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ:RPD), a leading
provider of security data and analytics solutions, today announced it has
acquired RevelOps, Inc. d/b/a Logentries (Logentries), a leading provider of
machine data search technology. With the addition of Logentries' world class,
cloud-based log management and search, Rapid7 will enable information security
teams to solve a full range of security challenges, deeply investigate
incidents, and more efficiently achieve their compliance requirements. Rapid7
acquired Logentries for an aggregate purchase price of approximately $68
million, consisting of approximately $36 million in cash and $32 million in
Rapid7 equity.
"We're thrilled to add Logentries' technology and team to Rapid7. 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," said
Corey Thomas, president and chief executive officer of Rapid7. "This is a
natural progression of our security data and analytics platform, complementing
our value proposition and accelerating our time to market."
Customers need solutions that can quickly cut through the noise to deliver
valuable information about activity in their IT environment. Today, Rapid7
offers one of the broadest and deepest collections of data, from the endpoint to
the cloud. With this robust data collection and packaged analytics, Rapid7
enables security teams to quickly and accurately assess and act to reduce risk,
identify and respond to threat actors on the network, and consistently improve
their security posture.
Logentries' innovative technology provides a powerful cloud-based solution for
searching, visualizing, and analyzing 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' scalable, cost-
effective architecture enables users to store and search structured, semi-
structured, and unstructured data in real time - in some cases five-to-ten times
faster than competing solutions - and at a lower cost.
The acquisition of Logentries accelerates Rapid7's product roadmap, adding
machine data search, forensics, and compliance capabilities that complement and
build upon Rapid7's core technology leadership and market strengths around
threat exposure management, and incident detection, investigation, and
analytics.
Andrew Burton, chief executive officer of Logentries commented, "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 is headquartered in Boston, Massachusetts, with a talented research
and development team based in Dublin, Ireland. 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. Rapid7
will continue to build this team and invest in its presence in Ireland.
Acquisition Details and Financial Impact
The acquisition of Logentries was completed on October 13, 2015 for an aggregate
purchase price of approximately $68 million, consisting of approximately $36
million in cash from Rapid7's balance sheet, the issuance of approximately 1.3
million unregistered shares of Rapid7 common stock, and the assumption of vested
options, which became exercisable for approximately 0.2 million shares of Rapid7
common stock.
"In addition to the strong technology and business fit between Logentries and
Rapid7, we're excited to add their unique technology and drive new offerings
that are expected to be accretive to Rapid7's growth rate," said Steven Gatoff,
chief financial officer of Rapid7. "We anticipate the acquisition of Logentries
driving an incremental $10-12 million in billings in 2016. Importantly, we do
not expect the acquisition to have a material impact on the overall timing of
our attainment of positive operating cash flow or on non-GAAP profitability
breakeven."
Rapid7 expects the acquisition of Logentries to be neutral to operating cash
flow in the second half of 2016 and to be accretive to operating cash flow, non-
GAAP operating income and non-GAAP earnings per share in 2017 and beyond.
For 2016, Rapid7 expects the acquisition to contribute approximately $4 million
to $5 million in revenue, be dilutive to non-GAAP operating loss and non-GAAP
loss per share by approximately $4 million to $5 million and $0.07 to $0.09,
respectively.
For the fourth quarter of 2015, Rapid7 expects the acquisition to contribute
approximately $1.5 million in incremental billings and approximately $0.5
million in revenue and to be dilutive to non-GAAP operating loss and non-GAAP
loss per share by approximately $2.5 million to $3 million and $0.06 to $0.07,
respectively.
In order to induce Logentries' employees to join and to retain and incentivize
them going forward, Rapid7 has granted 910,812 shares of restricted common stock
to 39 individuals who became employees of Rapid7 or one of its subsidiaries upon
the closing of the acquisition. These awards were approved by the compensation
committee of Rapid7's board of directors, and were issued on October 13, 2015
under and pursuant to the terms of Rapid7's 2015 Equity Incentive Plan, as
amended (the "Plan").
As required by NASDAQ Marketplace Rule 5635(c)(4), Rapid7 has today announced
these new employee inducement grants, which were made under a separate share
reserve under the Plan designated for awards to be made to new employees of
Rapid7 as an inducement material to such persons entering into employment with
Rapid7 that was not approved by Rapid7's stockholders. The inducement awards
described above vest over a one to three year period, with the first vesting
date occurring on the six month anniversary of the closing of the acquisition
and quarterly thereafter. Certain of these awards are subject to possible
accelerated vesting under certain circumstances.
Today's Conference Call and Webcast Information
Rapid7 will host a conference call today to discuss the acquisition of
Logentries at 5:00 p.m. Eastern Time. The call will be accessible by telephone
at 888-223-4580 (domestic) or 303-223-2683 (international). The call will also
be available live via webcast on the company's web site at
http://investors.rapid7.com. A telephone replay of the conference call will be
available at 800-633-8284 or 402-977-9140 (access code 21779435) until October
16, 2015. A webcast replay will be available at http://investors.rapid7.com.
About Rapid7
Rapid7 is a leading provider of security data and analytics solutions that
enable organizations to implement an active, analytics-driven approach to cyber
security. We combine our extensive experience in security data and analytics and
deep insight into attacker behaviors and techniques to make sense of the wealth
of data available to organizations about their IT environments and users. Our
solutions empower organizations to prevent attacks by providing visibility into
vulnerabilities and to rapidly detect compromises, respond to breaches, and
correct the underlying causes of attacks. Rapid7 is trusted by more than 4,150
organizations across 90 countries, including 34% of the Fortune 1000. To learn
more about Rapid7 or get involved in our threat research, visit www.rapid7.com.
About Logentries
Logentries provides a powerful cloud-based solution for collecting, searching,
visualizing, and analyzing machine data and logs. The scalable and cost-
effective architecture enables users to store and search structured, semi-
structured, and unstructured data in real time - in some cases five to ten times
faster than competing solutions. Logentries' unique approach is very efficient
for customers, and the user interface makes it easy to learn and use. Logentries
serves more than 3,000 customers in over 65 countries across a diverse set of
industries.
Non-GAAP Financial Measures
Rapid7 believes that the use of prospective non-GAAP operating loss and non-GAAP
loss per share is helpful to our investors. Non-GAAP financial measures should
not be considered in isolation from, or as a substitute for, financial
information presented in compliance with U.S. GAAP, and non-GAAP financial
measures as used by us may not be comparable to similarly titled amounts used by
other companies. Quantitative reconciliations of the prospective non-GAAP
measures included herein to the most directly comparable U.S. GAAP financial
measures have not been provided. Not all of the information necessary for
quantitative reconciliations is available to Rapid7 at this time
without unreasonable efforts.
Cautionary Language Concerning Forward-Looking Statements
This press release includes forward-looking statements. All statements contained
in this press release other than statements of historical facts, including,
without limitation, statements regarding the anticipated benefits of the
acquisition of Logentries and the future performance of the combined business,
the expected billings, revenue and cost contributions of the acquired business,
our future financial and business performance for the fourth quarter and full-
year 2015, technical innovations, market opportunity and plans and objectives
for future operations, are forward-looking statements. The words "anticipate,"
believe," "continue," "estimate," "expect," "intend," "may," "will" and similar
expressions are intended to identify forward-looking statements. We have based
these forward-looking statements largely on our current expectations and
projections about future events and financial trends that we believe may affect
our financial condition, results of operations, business strategy, short-term
and long-term business operations and objectives and financial needs. These
forward-looking statements are subject to a number of risks and uncertainties,
including, without limitation, risks related to our rapid growth and ability to
sustain our revenue growth rate, the ability of our products and professional
services to correctly detect vulnerabilities, competition in the markets in
which we operate, market growth, our ability to innovate and manage our growth,
our ability to operate in compliance with applicable laws and the risks and
uncertainties set forth in the "Risk Factors" section of our Quarterly Report on
Form 10-Q filed with the Securities and Exchange Commission for the quarterly
period ended June 30, 2015, and subsequent reports that we file with the
Securities and Exchange Commission. Moreover, we operate in a very competitive
and rapidly changing environment. New risks emerge from time to time. It is not
possible for our management to predict all risks, nor can we assess the impact
of all factors on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from those contained
in any forward-looking statements we may make. In light of these risks,
uncertainties and assumptions, we cannot guarantee future results, levels of
activity, performance, achievements or events and circumstances reflected in the
forward-looking statements will occur. We are under no duty to update any of
these forward-looking statements after the date of this press release to conform
these statements to actual results or revised expectations, except as required
by law. You should, therefore, not rely on these forward-looking statements as
representing our views as of any date subsequent to the date of this press
release.
CONTACT: Rapid7 Investor Relations:
+1 (857) 415-4419
investors(at)rapid7.com
Rapid7 Media Relations:
+1 (857) 288-7438
press(at)rapid7.com
This announcement is distributed by GlobeNewswire on behalf of
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Rapid7 via GlobeNewswire
[HUG#1958645]
Datum: 13.10.2015 - 22:10 Uhr
Sprache: Deutsch
News-ID 426693
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