SUSE Buys NeuVector for $130M to Strengthen Its Container Security Offerings

Enterprise-grade open-source solutions provider SUSE has acquired NeuVector, a provider of full lifecycle container security that delivers end-to-end security – from DevOps pipeline vulnerability protection to automated security and compliance in production. The total consideration for the acquisition is $130 million, of which $101 million is in cash while $29 million is through the issuance of 695,853 new shares.  

Based on the successful merger of SUSE and Rancher, the firm sees the same significant cross-sell potential in SUSE’s client base as it does with Rancher. SUSE hopes that the combined solution will improve the company’s sales funnel conversion and generate new prospects.

NeuVector is a well-established and expanding company that would boost SUSE’s revenue growth immediately. SUSE will invest in the combined NeuVector and SUSE Rancher go-to-market strategy in FY22, with the aim of additional acceleration in FY23 and beyond.

Open-Source the NeuVector Platform

Container security is the most critical issue in the adoption of cloud-native systems in the industry, according to S&P Global Market Intelligence publisher 451 Research, especially in highly guarded and regulated sectors.

SUSE plans to completely integrate NeuVector into SUSE Rancher, an enterprise container management platform, to provide end-to-end container security for the development, deployment, and operation of containerized applications in any mission-critical environment. SUSE will open-source the NeuVector platform as part of its commitment to create open, interoperable solutions.

Melissa Di Donato
“The integration of NeuVector into SUSE Rancher will create an unbeatable enterprise container management security platform that delivers the end-to-end container security our customers are asking for,” said Melissa Di Donato, CEO at SUSE.

Existing and future SUSE Rancher customers would benefit from NeuVector’s secured software value proposition, as they will have access to a fully integrated container security solution, allowing them to safeguard deployments and pipelines from malicious behaviour by attackers. SUSE Rancher will be able to satisfy risk management standards in regulated businesses including financial services, healthcare, and government with this compliance-driven strategy.

“Our customers have made it clear that security is critical to their cloud-native strategy and their digital transformation,” said Melissa Di Donato, Chief Executive Officer (CEO) at SUSE. “With this acquisition, we are following through on our promise to deliver the capabilities our customers need, whether organically or through acquisition. The integration of NeuVector into SUSE Rancher will create an unbeatable enterprise container management security platform that delivers the end-to-end container security our customers are asking for. NeuVector, like Rancher, is highly complementary to SUSE’s existing products and extends our reach into high growth markets, capitalizing on the scale and reputation of SUSE’s business.”

NeuVector has been a SUSE partner for some years, and NeuVector users may now utilize the SUSE Rancher application catalogue to deploy NeuVector.

“We are seeing an increase in customers operating a zero-trust model and who see SUSE as the natural fit to help customers protect deployments and pipeline,” said Fei Huang, co-founder of NeuVector. “Coupled with SUSE Rancher’s unique strength which offers full management of all Kubernetes distributions across any environment, our joint customers will also be able to secure the development of their containerized applications from core to cloud to edge environments. This will enable automation and agility in the Continuous Integration/Continuous Delivery pipeline so SUSE customers can benefit from real-time compliance, visibility and protection for their critical apps and data.”

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