JFrog buys Israeli security company Vdoo for $300 million

Israeli software company JFrog (Nasdaq: FROG), which held its initial public offering on Nasdaq last year, has found use of part of the funds it raised, and announced its acquisition of Israeli startup Vdoo for $300 million, of which $210 million. in cash and $90 million in JFrog stock, based on the average price for the past 15 days. JFrog, chaired by co-founder Shlomi Ben Haim, offers a solution for continuous software updates. Nine months ago, it raised $428 million in a $4 billion offering. After ups and downs in its share price after the flotation, it is now trading at nearly $50 a share, giving it a market capitalization of nearly $4.7 billion. At the end of the first quarter, the company had $606 million in cash. JFrog’s announcement of the acquisition states “JFrog will accelerate its efforts to provide an industry-leading security offering to support DevOps users as they respond to market disruption for continued software delivery. As part of the JFrog platform, Vdoo will accelerate JFrog’s vision of becoming the company behind all software updates and creating A world of fluid software by expanding the DevOps platform’s end-to-end offerings, providing end-to-end security from the development environment through to edges, IoT and hardware.” Many DevOps solutions today lack adequate security capabilities that are fully integrated into the software lifecycle. Security tools are dissimilar, and each has its own set of data, which creates friction between development and security teams, slowing down software update releases—especially on continuous delivery to the edge or across a wide range of devices. As a result, many of these security tools fail to deliver on the promises of fast, automated, and secure versions. “The market requires a comprehensive process that secures software components along the way, integrates security data to make effective decisions, saves time and resources, and blesses a comprehensive delivery system with the highest integrity for certified security versions – from any source to any endpoint.” Vdoo was founded in 2017 by Netanel (Nati) Davidi, its CEO, Uri Alter (Chairman), and Asaf Karas (CTO). According to IVC, the company employs more than 90 people, most of whom are in Israel. It raised $70 million in two fundraising rounds, the second round taking place this year. Investors in the company include 83North, Dell Technology Capital, GGV Capital, Qumra Capital, NTT Doccomo and Verizon. “We are excited to have Vdoo join the JFrog family,” said Ben Haim of JFrog. “It’s clear to us that a shared vision of maximizing the way software is created, released, and updated will be our compass as we offer the marketplace a two-focus solution to secure their enterprise software assets.” Related Articles JFrog Expands Tel Aviv Office, Employing 300 JFrog Companies Worldwide Exceeding Expected Scale With an initial public offering valuation of $3.9 billion, Israeli Internet of Things security firm Vdoo raised $25 million for Vdoo, Davide said: “This acquisition The proposal is a great fit for our company. We share the vision about DevOps and security: If any DevOps isn’t a security company either, it solves only a small piece of the puzzle.” At the same time he announced the acquisition, JFrog reiterated his guidance. For the second quarter, the company expects revenue of $47.6 million to $48.6 million, with non-GAAP operating income of $0.5 million to $1.5 million and non-GAAP earnings per share of $0.00 to $0.01, Assuming approximately 104 million diluted shares outstanding. For 2021, revenue is expected to be between $198 million to $204 million, with non-GAAP operating income between $5 million and $7 million, and a 3% increase in weighted average diluted shares in First quarter, JFrog had total revenue of $45.1 million, up 37% from the corresponding quarter, and posted a non-GAAP net loss of $0.09 per share, subject to closing of the proposed acquisition, JFrog expects its consolidated operating expenses to increase by approximately 9 – $10 million for the remainder of 2021. Published by Globes, Israel business news – en.globes.co.il – June 29, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021