Sophos to Buy Invincea, Boost Endpoint Protection Abilities

PRESS RELEASE — OXFORD, UNITED KINGDOM–(Marketwired – Feb 8, 2017) – Sophos (LSE: SOPH)

Sophos (LSE: SOPH), a global leader in network and endpoint security, today announced it has entered into an agreement to acquire Invincea, a visionary provider of next-generation malware protection. Invincea’s endpoint security portfolio is designed to detect and prevent unknown malware and sophisticated attacks via its patented deep learning neural-network algorithms. It has been consistently ranked as among the best performing machine learning, signature-less next-generation endpoint technologies in third-party testing and rated highly both for high detection and low false-positive rates.

Headquartered in Fairfax, Va., Invincea was founded by chief executive officer Anup Ghosh to address the rapidly growing zero-day security threat from nation states, cyber criminals and rogue actors. Invincea’s flagship product X by Invincea uses deep learning neural networks and behavioral monitoring to detect previously unseen malware and stops attacks before damage occurs. With a focus on the U.S. government, healthcare and financial services sectors, Invincea has been deployed in some of the most targeted networks in the world.

“By adding Invincea to our portfolio, Sophos is executing on its vision to assemble the most powerful technologies to provide the very best, cutting-edge defenses for our customers,” commented Kris Hagerman, chief executive officer at Sophos. “Invincea is leading the market in machine learning-based threat detection with the combination of superior detection rates and minimal false positives. Invincea will strengthen Sophos’ leading next-gen endpoint protection with complementary predictive defenses that we believe will become increasingly important to the future of endpoint protection and allow us to take full advantage of this significant new growth opportunity. We are proud to welcome the Invincea team to Sophos and look forward to introducing the benefits of this advanced technology to our customers and partners worldwide.”{ad}

Sophos is recognized as a leader in endpoint protection today with an expanding set of next-generation technologies such as the signature-less anti-malware, anti-exploit and anti-ransomware technology in Intercept X and the behavior-based analytics, Malicious Traffic Detection and Application Reputation in Sophos Endpoint Protection. The Invincea machine learning malware detection and prevention technology will be fully integrated into the Sophos endpoint protection portfolio, further strengthening Sophos’ leadership in this fast-growing market. The availability of Invincea technology through the Sophos Central security management platform will further enhance the Sophos synchronized security portfolio and real-time intelligence sharing.

“We started Invincea with the vision of using non-signature based technologies, including machine learning, in innovative ways to protect organizations against the most advanced forms of cyber-attack,” commented Anup Ghosh, founder and chief executive officer at Invincea. “X by Invincea represents a new generation in antivirus technology based on …

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… deep learning and behavioral monitoring. Joining forces with Sophos presents the perfect opportunity to take our proven, advanced technology to a global audience and make it part of a comprehensive synchronized security system. Sophos is leading the industry in adopting and bringing to market this disruptive new vision for complete, advanced, and integrated security, and we are delighted to join the team and help make it happen.”

Norm Laudermilch, chief operating officer and head of product development at Invincea added, “Invincea set out to disrupt the traditional approach to antivirus, and even now no single technology is enough to fully protect customers. I share the Sophos vision for bringing together a powerful ensemble of next-gen technologies to dramatically improve the overall effectiveness of endpoint protection. Along with our world-class technical team at Invincea, I’m looking forward to joining Sophos and helping deliver on this ambitious and exciting vision.”

The Invincea endpoint security portfolio including X by Invincea will continue to be supported and sold by Invincea and available via Invincea’s network of registered partners.{ad}

Sophos has agreed to acquire Invincea from its current shareholders for a cash consideration of $100 million with a $20 million earn-out. Sophos will retain the company’s office in Fairfax. Invincea CEO Anup Ghosh and COO Norm Laudermilch will join Sophos in key leadership positions. Consummation of the transaction is subject to the satisfaction of various closing conditions. Invincea Labs, a division of Invincea that has been separately managed and operated since 2012, has been separated prior to the acquisition and is not part of this transaction.

Forward-looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management’s view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement.

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About Sophos
More than 100 million users in 150 countries rely on Sophos’ complete security solutions as the best protection against complex threats and data loss. Simple to deploy, manage and use, Sophos’ award-winning encryption, endpoint security, Web, email, mobile and network security solutions are backed by SophosLabs – a global network of threat intelligence centers. Sophos is headquartered in Oxford, UK, and is publicly traded on the London Stock Exchange under the symbol “SOPH.” More information is available at www.sophos.com.

About Invincea
Founded in 2009, Invincea is the next-generation endpoint security company that detects and prevents unknown malware and sophisticated attacks via its patented deep learning neural-network algorithms. X by Invincea has been consistently ranked as among the best performing machine learning, signature-less next-generation endpoint technologies in third-party testing, rated highly both for high detection and low false-positive rates. The existing stockholders of Invincea include: Grotech Ventures, New Atlantic Ventures, Harbert Growth Partners, Dell Ventures, ORIX Growth Capital, as well as other individuals. Learn more at www.invincea.com.