QUICK TAKE

An active acquirer proving a key to growth is through acquisition. Let’s dive in.

What is the news?

1Password acquired Kolide, an endpoint security platform.

Why is this interesting?

This continues the trend of Canada's large but not public tech companies growing through acquisition. 1Password continues to be one of the more active acquirers in the ecosystem. 

Why did 1Password make this acquisition?

This appears to be a talent and product acquisition. 

Let’s break it down further

We can look at this from two important components:

Talent: As we mentioned earlier in the year, great talent is getting harder to acquire - in this case, all of Kolide's 30 employees will join 1Password.

Product: Kolide helps enterprises understand the mix of work and personal issue devices that employees use and provides secure and safe access from either device. This area is called endpoint cybersecurity and enhances 1Password's offering in this space.

Did this acquisition occur because of the funding market?

It doesn't appear so.

Kolide has raised $26.6m, has 250+ customers, and only 30 employees. This sounds like a company that has been capital-efficient and has significant room to run. 

This acquisition has an upside for both companies with Kolide getting better distribution into 1Passwords 100,000+ enterprises getting to see their product used by more companies faster and allowing 1Password to capture more share of wallet. 

What is the takeaway for the community?

This is 1Password’s third acquisition but they appear to be ramping up the skill and will to acquire companies. Expect to see more out of them.

This is a reminder that the best acquisitions are ones of companies in a strong position. 

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