Recommended Free Tools
iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Rapid7 announced on April 28, 2020, that it would acquire cloud-security company DivvyCloud for approximately $145 million, subject to adjustments. The deal closed on May 1, 2020. Rapid7’s SEC filing reports different closing consideration components, so the $145 million announcement figure should not be treated as the final cash paid.
What did Rapid7 announce?
Rapid7 said it had entered a definitive agreement to acquire Divvy Cloud Corporation on April 28, 2020. The announced aggregate purchase price was approximately $145 million, subject to adjustments, payable in cash and stock. Rapid7’s announcement described the expected transaction and its strategic rationale: Rapid7’s acquisition announcement.
When did the acquisition close, and what was paid?
Rapid7 reported in an SEC filing that the acquisition was completed on May 1, 2020. The filing’s closing consideration comprised cash paid at closing, shares for the founders, and deferred cash payments—not a single final cash payment of $145 million.
| Closing component | Reported amount or terms |
|---|---|
| Cash paid at closing | Approximately $130.8 million |
| Rapid7 common shares for DivvyCloud’s founders | 200,596 shares, delivered in three equal annual installments beginning on the first anniversary |
| Deferred cash payments | $7.4 million |
These are the components reported in Rapid7’s SEC Form 8-K. The approximately $145 million figure was the announcement’s aggregate transaction value, subject to adjustment; the SEC filing describes the consideration at closing. They refer to different stages and descriptions of the deal, so they should not be presented as interchangeable totals.
#1 Best Overall
What did DivvyCloud do?
DivvyCloud provided Cloud Security Posture Management (CSPM) software. Rapid7 described its capabilities as visibility into cloud environments, automated prevention, real-time remediation, and continuous security and compliance. Its named environments included Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, Alibaba Cloud, and Kubernetes. Rapid7’s product description is available in its announcement blog post.
That scope identifies the environments Rapid7 named; it does not establish support for every cloud provider, configuration, or deployment.
Rank #2
Why did Rapid7 acquire DivvyCloud?
Rapid7 said the acquisition would strengthen its CSPM offering as organizations moved workloads to cloud services. The company’s stated aim was to help customers manage governance, risk, and security across cloud and container environments. This was Rapid7’s rationale for the deal, rather than a separately demonstrated outcome of the acquisition.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
