Arctic Wolf Expands its Cybersecurity Portfolio with the Acquisition of Automation Platform Revelstoke

Arctic Wolf, a leading cybersecurity firm that has secured significant funding exceeding hundreds of millions in debt and equity, has announced its intention to acquire Revelstoke, a developer of a security orchestration, automation, and response (SOAR) platform, for an undisclosed sum.

In a recent blog post, Arctic Wolf's Chief Product Officer, Dan Schiappa, stated that this acquisition will enhance Arctic Wolf’s capabilities to detect and respond to cybersecurity threats more swiftly and comprehensively than ever before. The company’s flagship software aggregates data from endpoints, cloud environments, and network systems to create a unified view of potential threats, and Schiappa believes Revelstoke’s technology complements this framework effectively.

“We are significantly advancing our detection and response capabilities with scalable, tailored response actions. Our customers will benefit directly from this integration without the need to purchase additional modules,” Schiappa mentioned on Arctic Wolf’s blog. “By integrating Revelstoke’s platform into Arctic Wolf, we can now equip our customers with cutting-edge technology and deep security operations expertise, making SOAR outcomes practically seamless.”

It remains unclear whether all or part of Revelstoke’s team will transition to Arctic Wolf. However, an Arctic Wolf spokesperson confirmed that 30 members of Revelstoke's staff will join the company, including Bob Kruse, co-founder and CEO of Revelstoke, who will move into Arctic Wolf’s product-line sales team.

Founded in 2020 and based in San Jose, California, Revelstoke developed a platform capable of automating various security processes through pre-built integrations and a library of response playbooks. Its drag-and-drop playbook builder allowed customers to set up their workflows with minimal coding, while a reporting feature aimed to measure the business impact of a security team’s work.

Revelstoke also offered a “unified data layer,” facilitating the connection of different IT and cybersecurity applications for automation and orchestration. Moreover, it incorporated AI and large language models akin to OpenAI’s ChatGPT into its platform, enhancing the efficiency of building response playbooks—at least in theory.

Before being acquired by Arctic Wolf, Revelstoke raised $38 million from investors, including SYN Ventures, ClearSky Security, Rally Ventures, and Crosslink Capital.

"Security operations represent a transformative market segment, and Arctic Wolf is at the forefront of delivering a pioneering cybersecurity platform for businesses of all sizes," Kruse stated. "The innovative SOAR technology we’ve developed at Revelstoke perfectly complements the Arctic Wolf portfolio, and we look forward to contributing to Arctic Wolf’s mission to eliminate cyber risk and positively impact thousands of global customers."

Founded in 2012, Minnesota-based Arctic Wolf marks this acquisition as its third, following its purchases of RootSecure, a cybersecurity vulnerability assessment toolkit, and Tetra Defense, a ransomware stress test provider. With over 2,000 employees and a recent valuation of $4.3 billion, Arctic Wolf has been recognized by Deloitte as one of the fastest-growing companies in 2019 and 2020.

Last year, Arctic Wolf's CEO, Nick Schneider, hinted at a potential IPO for the company in 2022, although he later recalibrated those remarks as the IPO landscape and the cybersecurity sector faced more uncertainty.

Nonetheless, Arctic Wolf appears to be in a strong position, boasting $499 million in venture capital, over 3,000 global customers, and an estimated $200 million in annual recurring revenue. When the company raised $401 million in debt last October, Schneider noted that part of those funds would be allocated to mergers and acquisitions, and today's announcement fulfills that commitment.