Netwrix-Stealthbits Merger Kicks Off 2021 Cybersecurity M&A

The first cybersecurity M&A of 2021 is Netwrix merging with Stealthbits. The combined entity will offer a portfolio of seven security solutions.

The company will operate as Netwrix, with Steve Dickson continuing as CEO and board member. Steve Cochran, Stealthbits’ founder and chairman, will be an investor in Netwrix and will serve as a board member.

The combined company’s solutions identify and detect data security risk. They also help protect, respond and recover from cybersecurity attacks.

Netwrix and Stealthbits didn’t reveal the purchase price of this first cybersecurity M&A of 2021.

Core Products

The company will offer seven core products spanning all elements of data and information security. It will also invest in innovation for customers and partners, and expand its customer base globally.

It will have over 500 employees and customers from more than 50 countries.

Dickson said this first cybersecurity M&A of 2021 will mean a lot to Netwrix partners.

“We are joining forces to offer data security solutions for enterprises of all sizes from five users to five million,” Dickson said. “That means that Netwrix partners will eventually be able to expand the breadth of features they can offer from within the Netwrix products, offer additional products to their current customers, and perhaps even expand their customer base to include the largest businesses. One example of integration opportunities is the ability to leverage the Stealthbits governance capabilities and make them available to customers of Netwrix Auditor.”

Netwrix’s Steve Dickson

Typically, vendors offer fragmented solutions, which prevent organizations from building comprehensive cybersecurity strategies, he said.

“Solutions often overlap in functionality, which means that organizations pay twice for the same features,” Dickson said. “Netwrix and its partners will be able to offer customers a complete portfolio of security solutions to identify and detect data security risk, protect, respond and recover from cybersecurity attacks.”

For the foreseeable future, customers, prospects and partners will continue to interact with the company they are used to dealing with.

Combined Partner Program Coming

The Netwrix and Stealthbits leadership teams are working together on the partner program for the combined company, Dickson said. More details on channel programs for the combined company will be provided soon and shared with the channel community.

“Our goal is to keep both Netwrix’s and Stealthbits’ partners aware of the integration plan of the joint company, and help get clarity on the benefits to them and their customers to ensure they win the business when representing us,” he said.

Stealthbits’ partners will continue to offer a complete portfolio of more than a half dozen security solutions, Dickson said.

“Combining our breadth of products and depth of expertise with that of Netwrix means our customers can quickly strengthen their security posture and address multiple projects and requirements through a single provider,” Cochran said.

In October, TA Associates completed a majority investment in Netwrix. The vendor plans to use the investment to grow its portfolio of data security solutions and expand globally.

Netwrix’s business model focuses on the midmarket.