Enterprise-grade open source solutions provider, SUSE announced the acquisition of NeuVector. NeuVector, founded in 2015 by Fei Huang and Gary Duan, is a full lifecycle container security provider that delivers end-to-end security which includes DevOps pipeline vulnerability protection, automated security, and compliance in production.
The total consideration of the acquisition of NeuVector is $130 million. $101 million of which is from the company’s cash balance and $29 million is through the issuance of 695,853 new shares. SUSE stated that NeuVector will be immediately accretive to SUSE’s revenue growth. The company also stated that it will invest in the combined go-to-market proposition of NeuVector and SUSE Rancher to drive acceleration further in the following years.
According to the announcement, the company intends to integrate the new solution into SUSE Rancher, an enterprise container management platform. With the integration, the company will deliver end-to-end container security covering the building, deploying, and running of containerized applications in any mission-critical environment. The acquisition aligns with the strategy and goals communicated during SUSE’s recent IPO, which is to use access to the equity markets. Melissa Di Donato, CEO of SUSE said,
“Our customers have made it clear that security is critical to their cloud-native strategy and their digital transformation. With this acquisition, we are following through on our promise to deliver the capabilities our customers need, whether organically or through acquisition. The integration of NeuVector into SUSE Rancher will create an unbeatable enterprise container management security platform that delivers the end-to-end container security our customers are asking for. NeuVector, like Rancher, is highly complementary to SUSE’s existing products and extends our reach into high growth markets, capitalizing on the scale and reputation of SUSE’s business.”