SailPoint acquires Orkus and OverWatchID to help orgs govern access to all applications

SailPoint Technologies Holdings, the leader in enterprise identity governance, announced it has completed the acquisition of two companies, Orkus and OverWatchID.

With these two acquisitions, SailPoint is delivering on its mission to help organizations govern access to all applications, including the rapidly emerging cloud infrastructures on which their digital business are built.

“As the adoption of cloud applications and IaaS environments like AWS, Azure and Google Cloud continues to skyrocket, organizations today need to better address how they control access to these cloud resources to avoid introducing new areas of security, operational and regulatory risk,” said Paul Trulove, Chief Product Officer, SailPoint.

“With Orkus, we’re addressing the increasingly dynamic nature of access in IaaS platforms, enabling customers to leverage AI and ML technologies to continuously monitor access relationships and patterns for every cloud resource.

“And with OverWatchID, we’re adding a new dimension to SailPoint Predictive Identity by tapping into OverWatchID’s use of activity information to improve the application of access controls, particularly in cloud-based environments.”

Both Orkus and OverWatchID will be integrated into the SailPoint Predictive Identity Platform in the first half of 2020. Once the integration is complete, organizations of all sizes will have access to a new approach to governing cloud environments, one that takes advantage of AI and machine learning and integrates seamlessly into existing identity governance programs.

Taken together, this will enable organizations to accelerate access decisions to sensitive cloud resources, detecting potential anomalies and better enforcing access policies across all users, while maintaining compliance across all enterprise infrastructures.

“With these acquisitions, SailPoint is once again driving the evolution of identity governance to keep pace with the speed of business,” continued Trulove.

“By deepening the governance of cloud infrastructures, we are expanding the definition and scope of what an identity governance platform should be capable of managing. SailPoint Predictive Identity is the comprehensive next generation cloud identity platform that organizations require today.”

Total consideration for the two acquisitions was $37.5 million. SailPoint does not expect to generate any material revenue from either of these acquisitions during the quarter ending December 31, 2019. During the same quarter of 2019, the two acquisitions are expected to add an aggregate of approximately $2 million of non-GAAP expense.

These statements regarding SailPoint’s expectations of the financial outlook related to the two acquisitions are forward-looking and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause the actual results to differ materially from these forward-looking statements.

Forward-looking non-GAAP expense represents SailPoint’s estimate of the additional expenses anticipated to be incurred by SailPoint as a result of the two acquisitions, excluding transaction expense, stock-based compensation expense, and amortization of acquired intangibles.

SailPoint has not reconciled its expectations as to non-GAAP expense to its most directly comparable GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to transaction expense and stock-based compensation expense.

Transaction expense is affected by pre-closing work by third-party service providers that has not yet been billed and post-closing work that is difficult to predict and subject to change.

Stock-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change.

The actual amount of the excluded transaction expense, stock-based compensation expense, and amortization of acquired intangibles will have a significant impact on SailPoint’s GAAP expense. Accordingly, a reconciliation of our forward-looking non-GAAP expense is not available without unreasonable effort.

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