Welcome to my latest round-up of mergers, acquisitions, and investments in software infrastructure. Lots of smaller deals, plus one really large one since my last letter.
Zscaler Reportedly in Talks to Acquire Avalor
Zscaler is reported to be in advanced talks to acquire Israeli data integration startup Avalor Security, a Zscaler Company for an estimated $250-350 mm. Avalor claims to tackle data fragmentation by unifying all sources, from legacy systems to SQL databases, giving businesses a complete picture of their performance. The platform goes beyond security data, analyzing everything to prioritize risks and guide remediation efforts with clear KPIs. Stakeholders gain real-time data transparency and quick insights, empowering informed decision-making across the organization.
Avalor surfaced from stealth in April 2022 with a $25 mm Series A funding backed by TCV and Salesforce Ventures. The acquisition of Avalor would mark Zscaler’s third Israeli investment, with the latest being Canonic for $50mm about a year ago.
Chronosphere Acquires Calyptia, Strengthening Observability Platform
Chronosphere the hot cloud-native enterprise observability platform announced the acquisition of Calyptia, a startup focused on processing observability data. Calyptia has connections to the Fluent Ecosystem consisting of popular open-source projects Fluentd and Fluent Bit. The company had raised $5mm in seed funding in 2022 from SIERRA Ventures and Carbide Ventures. Chronosphere did not disclose any financial details of the acquisition.
Chronosphere’s has raised $350 mm and is currently valued at about $1.6 bn. It recently secured a strategic $5 mm investment from CrowdStrike.
Vicarius Secures $30M Series B for Its Vulnerability Remediation Platform
Vicarius, an Israeli startup positioning itself with an autonomous vulnerability remediation platform, announced a $30 mm Series B funding round led by Bright Pixel Capital. The company was founded in 2016 and has raised a total of $56 mm. The growth capital will facilitate the company’s global expansion and support its increasing customer base, which includes over 400 enterprises including PepsiCo and Hewlett Packard Enterprise.
Synopsys Announces Intent to Acquire Ansys in a Monumental $35 Billion Deal
In an industry-shaping move, Synopsys Inc has announced its intention to acquire Ansys, a leader in simulation and analysis, with a total enterprise value of approximately $35 billion. The acquisition is poised to revolutionize the “silicon to systems” design landscape, bolstering Synopsys’ position as a powerhouse in integrated design solutions augmented with AI.
Secret Double Octopus Closes Series C Funding for Passwordless Technology Push
Secret Double Octopus a provider of passwordless authentication solution has closed a Series C funding round, securing an additional $15 mm led by BGV. The recent capital will expedite the company’s expansion and the dissemination of its passwordless solutions across various industries, addressing growing global security concerns in the digital space.
My day job is advising growing companies on fundraising and M&A. If you are an investor or entrepreneur I’d love to connect.