Mimecast Acquires Threat Detection Startup Solebit for $88 Million

Email and data security firm Mimecast (NASDAQ: MIME) announced on Tuesday that it has acquired threat detection firm Solebit for approximately $88 million net of cash acquired.

Founded in 2014 by cybersecurity experts from the Israel Defense Forces (IDF), Solebit announced that it had raised $11 million in Series A funding in March 2018.

Solebit’s technology helps detect and protect against zero-day malware and unknown threats in data files and links to external resources/URLs.

“Security methods like signature-based antivirus and sandbox detonation are too limited when it comes to today’s most advanced threats,” said Peter Bauer, chief executive officer at Mimecast. 

“Solebit has developed a differentiated approach that is engineered to preclude the need for signatures and sandboxes,” the company explains. “It is designed to help customers find advanced threats by recognizing when there is malicious code embedded within active content and data files.”

Mimecast says that Solebit’s threat detection tools are already integrated into Mimecast Targeted Threat Protection products. 

London, UK-based Mimecast announced earlier this month that it had acquired Bethesda, Md-based security training company Ataata. 

 

“Combined with the recent acquisition of Ataata in the security awareness and training space, and the recently previewed early adopter web security program, Solebit brings another important set of microservices to the Mime|OS platform that all of Mimecast’s unified services are built upon,” the company says.

Research by Mimecast and Vanson Bourne in May 2018 highlighted the extent to which humans are the targeted weakness in cybersecurity. From a pool of 800 IT decision makers and C-level executives, 94% had witnessed untargeted phishing attacks, 92% had witnessed spear-phishing attacks, 87% had witnessed financially-based email impersonation attacks (BEC), and 40% had seen an increase in trusted third-party impersonation attacks. 

Founded by Bauer and CTO Neil Murray in 2003, Mimecast went public in late 2015 at $10 per share, raising $78 million in gross proceeds. After the IPO, share value fell as low as $6.20 in January 2016. Since July 2016, however, share price has risen steadily, sitting at $36.37 at the time of writing. 

Investors in Solebit include ClearSky Security, MassMutual Ventures and Glilot Capital Partners.