RSE Ventures (“RSE”), a New York-based private investment firm founded by Stephen M. Ross and Matt Higgins, announced that it has entered into a definitive agreement to sell SKOUT Cybersecurity (“SKOUT”), a leader in cyber-as-a-service software for Managed Service Providers (MSPs) and provider of an extended detection and response (XDR) platform and service, to Barracuda Networks, Inc.
SKOUT offers its channel partners the security products they need through a powerful XDR platform, which equips MSPs with tools to provide 24/7/365 protection and easily monitor clients in a single multi-tenancy dashboard. The Company’s cyber-as-a-service products are designed to eliminate the hidden cost of inefficiency, allowing MSPs to spend less energy configuring and managing different solutions and focus on key incidents that need remediation.
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Since acquiring SKOUT in 2017, RSE partnered with management to help advance the Company’s technological platform and enable an ecosystem that makes cybersecurity for small and medium-sized businesses both accessible and easy to use. SKOUT has achieved tremendous success under RSE’s ownership and saw a year of record growth in 2020, including an over 700 percent increase in the number of MSPs using its software platform.
“SKOUT is an outstanding business with solutions that address the critical need for cybersecurity protection, and we’re proud to have supported the Company’s growth over the past four years,” said Matt Higgins, Co-founder and CEO of RSE Ventures. “We acquired SKOUT with the belief that ongoing digital transformations would increase the risk of cyberattacks, leaving midmarket companies vulnerable due to the cost and complexity of traditional security solutions, and we were pleased to collaborate with Alex Weiss of ClearSky who shared these viewpoints as well. Today, SKOUT is well-positioned to continue disrupting the cybersecurity space while bringing peace of mind to SMBs through its customer-centric approach and user-friendly resources. Under Aidan Kehoe and the management team’s leadership, SKOUT has established a strong foundation and clear trajectory for continued success, and we wish the Company well in this next chapter.”
“RSE has been an incredible partner over the last four years, and I would like to thank Steve and Matt for bringing deep expertise and resources to help accelerate our growth and bolster SKOUT’s leading position within the space,” said Kehoe, Founder and CEO of SKOUT Cybersecurity. “It has been a pleasure working closely with Matt and his team throughout this journey, and with their support, we made great strides in furthering our vision of making cybersecurity accessible to all businesses. I’m proud of all we were able to accomplish together during our partnership and look forward to SKOUT’s next phase of growth.”
The transaction is anticipated to close in July, subject to obtaining required regulatory and third-party consents, and satisfaction of other customary closing conditions.
Boston Meridian served as financial advisor to SKOUT and Sheppard Mullin Richter & Hampton LLP served as legal counsel. The transaction was led by RSE Chief Investment Officer, Uday Ahuja, and RSE General Counsel, Corrine Glass.
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