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Wipro exits Israeli cybersecurity startup IntSights at 4.5X returns

Wipro exits Israeli cybersecurity startup IntSights at 4.5X returns
Photo Credit: 123RF.com
20 Jul, 2021

Wipro has fully exited its investment in threat intelligence platform developer IntSights Cyber Intelligence as part of the Israeli startup’s acquisition by data and analytics security solutions provider Rapid7 in a $335 million deal.

The Bengaluru-based software services firm had acquired a minority stake of less than 20% in IntSights during 2016-19 for an aggregate investment of $4.21 million. The investment was made through Wipro Ventures, the strategic investment arm of Wipro. The company has now sold its entire stake in IntSights for a consideration of $19.17 million, raking in over 4.5 times returns on its original investment.

Wipro announced the development in a stock exchange filing on Tuesday.

IntSights was founded in 2015 by Guy Nizan, Alon Arvatz and Gal Ben David, all former members of the Israeli defence forces’ intelligence wing. It offered contextualized external threat intelligence and proactive threat remediation.

Last month, Wipro sold its entire stake in American application security firm Denim Group to cloud and cybersecurity consulting and managed services provider, Coalfire. It had acquired 33.33% in Denim Group in 2018 at an investment of $8.83 million and sold the same for $22.42 million as part of Denim Group’s acquisition by Coalfire.  

The IT services major also sold its entire stake in hybrid IT services provider Ensono Holdings to private equity firm KKR last month. Wipro had acquired 10.2% stake in the Illinois headquartered company in March 2018 at an investment of $55 million. The IT services giant had signed a long-term partnership agreement with the company when it sold its hosted data centre business to Ensono for a consideration of $405 million. As part of the deal, Wipro transferred 900 employees to Ensono and sold eight data centres.

After selling its non-core businesses, Wipro has managed to shore up smaller buys in alignment with its primary business verticals. In 2020, it acquired SaaS and cloud solutions provider for financial services sector Encore Theme Technologies, apart from engineering services company Eximius Design and European Salesforce multi-cloud partner, 4C. Earlier this year the company announced its largest acquisition, a $1.45 billion buy, with London headquartered global management and technology consultancy firm Capco.