Arctic Wolf

Arctic Wolf expands its cybersecurity capabilities with the addition of Revelstoke to the group

An undisclosed sum will be paid by Arctic Wolf, a cybersecurity firm that has raised hundreds of millions of dollars in debt and equity, to purchase Revelstoke, a firm building a security orchestration, automation, and response (SOAR) platform. Arctic Wolf's chief product officer, Dan Schiappa, wrote in a blog post that the acquisition would make it possible for the company's platform to identify and counter cybersecurity assaults "faster" and "more thoroughly" than previously. Schiappa sees Revelstoke's products as a complement to Arctic Wolf's flagship software, which gathers information from a company's endpoints, cloud environments, and networks to deliver a unified view of potential risks.

According to Schiappa on Arctic Wolf's blog, "We're improving our detection and response capabilities with tailored response actions at scale, while our customers will directly reap the benefits of the technology without having to purchase new modules." As a result of integrating Revelstoke's platform into Arctic Wolf, the company is now able to provide its clients with the cutting-edge technology and in-depth security operations knowledge required to make SOAR outcomes turnkey. It wasn't immediately clear whether all of Revelstoke's crew will join Arctic Wolf or just a section of them. Later, an Arctic Wolf representative told TechCrunch that 30 Revelstoke employees will join Arctic Wolf and that Bob Kruse, the co-founder and CEO of Revelstoke, will join the company's product-line sales team.

Revelstoke, a 2020 startup with headquarters in San Jose, California, provided a platform with pre-built connectors and a collection of response playbooks that could automate a variety of security operations. The platform offered a drag-and-drop playbook builder that allowed users to customize their workflows with little to no coding, as well as reporting tools that sought to gauge the business effect of a security team's efforts. Revelstoke also maintained what it referred to as a "unified data layer," which enabled it to bring diverse IT and cybersecurity tools and technologies together for automation and orchestration purposes. Additionally, it integrated AI and massive language models into its central platform, similar to OpenAI's ChatGPT, which (in theory) made it easier to create response playbooks.

Investors, including SYN Ventures, ClearSky Security, Rally Ventures, and Crosslink Capital, contributed $38 million to Revelstoke before the purchase of Arctic Wolf. In a prepared statement, Kruse stated that "security operations is the next market-changing category," with Arctic Wolf taking the lead in providing an industry-defining cybersecurity platform for companies of all sizes. "The innovative SOAR technology we've developed at Revelstoke is the perfect complement to the Arctic Wolf portfolio, and we're excited to join the Arctic Wolf team in its mission to end cyber risk and see how our platform makes a difference for thousands of customers around the world," said Revelstoke.

Arctic Wolf, a Minnesota-based firm launched in 2012, has acquired RootSecure, a toolbox for assessing cybersecurity vulnerabilities, and Tetra Defense, a provider of ransomware stress tests, making Revelstoke its third acquisition. The company Arctic Wolf, which employs over 2,000 people and has a stated market value of $4.3 billion, was included on Deloitte's list of the 500 fastest-growing companies in 2019 and 2020.

According to press reports from the previous year, Arctic Wolf CEO Nick Schneider stated that the company intended to go public sometime in 2022. But as the environment for IPOs and the more significant cybersecurity business became more uncertain, he later took those remarks back. With $499 million in venture money, more than 3,000 customers worldwide, and an estimated $200 million in recurring revenue annually, Arctic Wolf appears to be in a strong position. Schneider promised to dedicate a portion of the $401 million in debt the business raised last October to mergers and acquisitions, and he followed through on that pledge today.