A UCD spin-out company has been acquired by a major US security data firm for $68m (€59.47m) in a cash and equity deal.
Logentries, which was co-founded in 2010 by Dr Trevor Parsons and Dr Viliam Holub as a spin-out from UCD’s Performance Engineering Lab, is a leading provider of technology which searches machine data, or information created by devices.
The company, which is headquartered in Boston with a significant research and development facility in Dublin, was snapped up in the multi-million euro deal by Rapid7, also with its headquarters in Boston.
UCD is also set to benefit from the deal given its equity stake in the spin-out.
“Logentries, which emerged from UCD’s research focus on ‘big data’ and the fostering of partnerships by the university with industry, is an excellent example of the quality of the companies emerging from University College Dublin.
“The company, originally based and supported at NovaUCD, has grown over five years into a global company delivering significant impact for its thousands of customers around the world,” said UCD research vice-president, Professor Orla Feely.
The startup took part in UCD’s company development programme run through its incubation centre, NovaUCD in 2010 and was the overall winner of 2010 programme.
The purchase price is divided into $36m in cash and $32m in Rapid7 equity.
Rapid7 expects the acquisition to contribute up to $5m in revenue next year and a further $0.5m in the final quarter of 2015.
Logentries’ innovative technology provides a powerful cloud-based solution for searching, visualising and analysing machine data and logs.
Its software architecture enables users to store and search different categories of data in real time, sometimes up to 10 times faster than competing technologies and at a lower cost.
Logentries counts more than 3,000 firms among its customers, in 65 countries, and employs approximately 70 workers.
Rapid7 says it intends to continue investing in Logentries R&D operations here.
“We’re thrilled to add Logentries’ technology and team to Rapid7. The disruptive combination of Rapid7’s industry-leading data collection and security analytics and Logentries’ compelling machine data search technology, enables customers to better understand and quickly respond to risk in their IT environment,” Rapid7 chief executive, Corey Thomas said.
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