BitSight, a cybersecurity ratings company based in Boston, said Monday it has raised $250 million in a new partnership with credit ratings giant Moody’s, as the tech company seeks to evaluate the cyber risks facing America’s largest corporations.
The deal, which values BitSight at $2.4 billion, comes amid a sharp rise in cyber attacks against corporate America that has laid bare hundreds of billions of dollars at risk from cyber breaches and ransomware gangs. It also follows renewed efforts by Biden administration officials to urge companies to be more transparent about the cyber risks they face.
As part of the transaction, BitSight will acquire VisibleRisk, a firm that quantifies cyber risk and has offices in New York and Tel Aviv. Terms of the acquisition were not disclosed.
“As organizations invest in cyber defense and resilience, another critical need has emerged,” Rob Fauber, chief executive of Moody’s, said in a statement. “The ability to accurately measure and quantify cyber risk and exposure.”
BitSight was founded in 2011 by MIT graduates Nagarjuna Venna and Stephen Boyer. The company’s platform uses algorithms to assess a company’s chances of being breached. It also provides customers with cybersecurity ratings, risk metrics, and security benchmarks to better assess and combat cyber threats.
As cyber breaches and ransomware attacks have increased, BitSight has grown its customer base to roughly 2,300 clients, including 20 percent of Fortune 500 companies, company figures show. Prior to this funding round, BitSight raised more than $165 million, according to PitchBook data, so the latest deal brings total investment in the company to at least $415 million.
The new money will be used to enhance BitSight’s product offerings, the company said.
Steve Harvey, president of BitSight, said in a statement that “cybersecurity is one of the biggest threats to global commerce in the 21st century” and that the company’s new cash and acquisition of VisibleRisk will help the market better manage and assess cyber risks facing corporations.
As a result of the deal, Moody’s will become BitSight’s largest shareholder, with a minority stake in the company, officials said.