VMware acquires network security firm Lastline, said to lay off 40% of staff

Zack Whittaker and Frederic Lardinois

VMware is acquiring network security firm Lastline, TechCrunch has learned.

Since its launch in 2012, Lastline raised about $52.2 million, according to Crunchbase. Investors include Thomvest Ventures, which led the company's $28.5 million Series C round in 2017; Redpoint and e.ventures, which led the company's 2013 funding round; and Barracuda Networks, NTT Finance and Dell Technologies Capital.

A source tells us that VMware will let go some 40% of Lastline's employees — about 50 staffers — as part of the acquisition. We asked a Lastline spokesperson for comment prior to publication but did not hear back. A spokesperson for VMware also did not respond to a request for comment.

After we published, Lastline confirmed the acquisition in a blog post.

"By joining forces with VMware, we will be able to offer additional capabilities to our customers and bring to market comprehensive security solutions for the data center, branch office and remote and mobile users," said Lastline's chief executive John DiLullo.

Terms of the deal were not disclosed. The deal, subject to regulatory approvals, is expected to close by the end of July.

Lastline provides threat detection services mostly focused on the network level, but they range from malware analysis to intrusion detection and network traffic analysis. The company prides itself on being a cloud-native platform and, as such, it promises to secure cloud deployments and on-premises networks, as well as multi-cloud and hybrid environments.

Recently, support for cloud-native hybrid and multi-cloud deployments has very much been a focus for VMware, which makes Lastline a pretty obvious fit for its overall strategy. This also marks VMware's third security acquisition this year, after it picked up network analytics firm Nyansa in January and cloud-native security platform Octarine in May. VMware also acquired security firm Carbon Black in August 2019. The trend here is pretty obvious, and VMware is obviously trying to position itself as the provider of choice for enterprises that are looking for cloud-native security tools.

The company was founded by Christopher Kruegel, Engin Kirda and Giovanni Vigna, a team of computer science professors from the University of California, Santa Barbara and Northeastern University.

News of the acquisition comes a week after VMware announced solid Q1 earnings of $386 million, or $0.92 a share. Revenues came in at $2.73 billion, up about 12% on the same period a year ago. VMware CEO Pat Gelsinger attributed the quarter to the shift to work-from-home sparked by the coronavirus pandemic.

VMware shares were down slightly at Thursday's market close.

Updated to include Lastline's blog post on the acquisition.

12 top cybersecurity VCs discuss investing, valuations and no-go zones


More From

  • Facebook makes education push in India

    Facebook, which reaches more users than any other international firm in India, has identified a new area of opportunity to further spread its tentacles in the world’s second largest internet market. On Sunday, the social juggernaut announced it had partnered with the Central Board of Secondary Education, a government body that oversees education in private and public schools in India, to launch a certified curriculum on digital safety and online well-being, and augmented reality for students and educators in the country. Through these subjects, Facebook and CBSE aim to prepare secondary school students for current and emerging jobs, and help them develop skills to safely browse the internet, make “well informed choices,” and think about their mental health, they said.

  • Rocket Lab launch fails during rocket's second stage burn, causing a loss of vehicle and payloads

    Rocket Lab's 'Pic or it didn't happen' launch on Saturday ended in failure, with a total loss of the Electron launch vehicle and all seven payloads on board. The launch vehicle experienced a failure during the second stage burn post-launch, after a lift-off from the Rocket Lab Launch Complex 1 on Mahia Peninsula in New Zealand. The mission appeared to be progressing as intended, but the launch vehicle appeared to experience unexpected stress during the 'Max Q' phase of launch, or the period during which the Electron rocket experiences the most significant atmospheric pressure prior to entering space.

  • How to watch Rocket Lab launch satellites for Canon, Planet and more live

    Rocket Lab is launching a rideshare mission today which includes seven small satellites from a number of different companies, including primary payload provider Canon, which is flying a satellite equipped with the camera-maker's Earth imaging technology, including high-res photo capture equipment. The Electron rocket that Rocket Lab is flying today will also carry five Planet SuperDove Earth-Observation satellites, as well as a CubeSat from In-Space missions. The launch, which is named 'Pics or It Didn't Happen' is set to take place during a window which opens at 5:19 PM EDT (2:19 PM PDT) and extends until 6:03 PM EDT (3:03 PM EDT), lifting off from Rocket Lab's Launch Complex 1 on the Mahia Peninsula in New Zealand.

  • How Have I Been Pwned became the keeper of the internet's biggest data breaches

    When Troy Hunt launched Have I Been Pwned in late 2013, he wanted it to answer a simple question: Have you fallen victim to a data breach? Seven years later, the data-breach notification service processes thousands of requests each day from users who check to see if their data was compromised — or pwned with a hard 'p' — by the hundreds of data breaches in its database, including some of the largest breaches in history. As it's grown, now sitting just below the 10 billion breached-records mark, the answer to Hunt's original question is more clear.