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McAfee to acquire Skyhigh Networks in push into cloud security

McAfee has acquired cloud security start-up Skyhigh Networks

McAfee to acquire Skyhigh Networks in push into cloud security
McAfee was spun-out of Intel less than a year ago
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Less than eight months after formally separating from Intel, McAfee has acquired cloud computing security company Skyhigh Networks for an undisclosed sum. 

McAfee claimed that the deal would enable it to develop more advanced cyber security architecture covering endpoint and cloud control points. It also wants to create a system linked by intelligence, analytics and orchestration.

As part of the deal, Skyhigh's current CEO Rajiv Gupta will join McAfee CEO Chris Young's leadership team. He'll be responsible for running the company's cloud business unit. 

Skyhigh's existing organisational structure will remain the same, ensuring there's a degree of continuity for customers and partners. However, Skyhigh will be exposed to McAfee's global customer base.

Chris Young, CEO of McAfee, said that the deal would help consolidate his company's position in the burgeoning cloud security market.

"Skyhigh Networks had the foresight five years ago to realise that cyber security for cloud environments could not be an impediment to, or afterthought of, cloud adoption," said Young.

He continued: "They pioneered an entirely new product category called cloud access security broker (CASB) that analysts describe as one of the fastest growing areas of information security investments of the last five years - where Skyhigh continues to innovate and lead.

"Skyhigh's leadership in cloud security, combined with McAfee's security portfolio strength, will set the company apart in helping organizations operate freely and securely to reach their full potential."

Skyhigh Networks's portfolio provides visiblity into content, context and user activity across a variety of environments. It also runs a platform that lets cloud providers control SaaS applications.

Gupta said: "Becoming part of McAfee is the ideal next step in realising Skyhigh Networks' vision of not simply making the cloud secure, but making it the most secure environment for business.

"McAfee will provide global scale to further accelerate Skyhigh's growth, with the combined company providing leading technologies and solutions across cloud and endpoint security - categories Skyhigh and McAfee respectively helped create, and the two architectural control points for enterprise security." 

McAfee had been acquired by Intel for $7.68bn in August 2010 as part of its diversification strategy, but was offloaded earlier this year to private equity in a deal valuing the company at just over $8bn. 

The company is now 51 per cent owned by TPG Capital and Thoma Bravo, with Intel retaining a substantial 49 per cent minority stake. 

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