Rapid7 announced on April 28, 2020, that it would acquire cloud-security firm DivvyCloud for approximately $145 million, subject to adjustments. The deal closed on May 1, 2020. The announcement figure was not the same as the closing consideration later reported in Rapid7’s SEC filing, which itemized cash, stock and deferred payments.
What was the deal value?
Rapid7’s April 28 announcement put the planned aggregate purchase price at approximately $145 million, subject to adjustments, payable in cash and stock. That was the headline value for the announced transaction, not a final cash-only price. Rapid7’s announcement described the agreement as definitive and anticipated a May 2020 close.
What did Rapid7 report when the deal closed?
Rapid7’s SEC filing says the acquisition was completed May 1, 2020. It reports closing consideration in three components:
- Approximately $130.8 million in cash paid at closing.
- 200,596 Rapid7 common shares for DivvyCloud’s founders, to be issued in three equal annual installments beginning on the first anniversary of closing.
- $7.4 million in deferred cash payments.
These figures describe the consideration reported at closing, not an alternate version of the announcement headline. The announced amount was approximate and subject to adjustments; the SEC filing sets out the closing components.
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What did DivvyCloud do?
DivvyCloud provided cloud security posture management (CSPM) software. Rapid7 described the product as giving organizations visibility into cloud environments, automated prevention, real-time remediation, and continuous security and compliance capabilities. The company named AWS, Microsoft Azure, Google Cloud Platform, Alibaba Cloud and Kubernetes among the environments supported. That scope should not be read as a claim of support for every cloud service or configuration.
Why did Rapid7 acquire DivvyCloud?
Rapid7 said the acquisition would strengthen its CSPM offering as organizations moved workloads to cloud services and needed governance, risk and security capabilities across cloud and container environments. That was the buyer’s stated strategic rationale; the announcement alone does not establish the acquisition’s subsequent business results.
In practical terms, the deal expanded Rapid7’s cloud-security capabilities beyond a standalone posture-management product by adding DivvyCloud’s visibility and remediation functions to its broader security portfolio, according to the company’s description.
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When did the acquisition happen?
| Milestone | Date | What it means |
|---|---|---|
| Agreement announced | April 28, 2020 | Rapid7 announced an approximately $145 million aggregate price, subject to adjustments. |
| Acquisition closed | May 1, 2020 | Rapid7 completed the transaction and reported the closing consideration components in its SEC filing. |
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