NitroSecurity Gets $6M In Funding, Acquires Security Business Of LogMatrix

PORTSMOUTH, N.H. – October 8, 2010 – NitroSecurity, Inc., the leader in high-performance, content-aware security information and event management solutions (SIEM), today announced that the company has secured $6 million in Series B funding and expanded its customer and technology portfolio through the acquisition of the security business of LogMatrix.

The round was co-led by existing investors Brookline Venture Partners, First Analysis and NewSpring Ventures. The investment will be used to expand NitroSecurity’s domestic and international market presence, evolve the award-winning NitroView SIEM product family, fund future acquisitions, and integrate LogMatrix’s sophisticated risk-based assessment and correlation technologies.

New risk-based technologies help security analysts monitor and analyze cyberactivity on IT infrastructure based on relative activity and potential impact. Adding risk-based capabilities to current rule-based solutions, which look for specific, pre-defined threats and actions, will give analysts more effective tools to efficiently defend their data.

Customers using LogMatrix technology include AT&T and the City of Seattle. The City of Seattle, in partnership with the University of Washington and the University of Michigan, is utilizing LogMatrix technology to address the logical security of shared critical infrastructure in the Puget Sound metropolitan region.

Domestically, NitroSecurity is increasing its investments in the high-growth federal, healthcare and critical infrastructure markets, where the company’s unmatched technical certifications and strategic partnerships are driving increased market penetration. Internationally, NitroSecurity is expanding its presence in the fast-growing EMEA, Asia Pacific and Latin American security markets.

“Due to relentless cyberthreats and increasing regulation, demand for our solutions has never been stronger – and it’s growing rapidly,” said Ken Levine, president and CEO of NitroSecurity. “NitroSecurity is dedicated to delivering a technology platform that is second-to-none in addressing the real-time security and compliance challenges within the most demanding network environments. This funding and technology acquisition help ensure that we continue to anticipate the needs of our customers and aggressively grow revenues in new markets and geographies.”

Today’s news underscores tremendous momentum for NitroSecurity and its game-changing NitroView product portfolio. Highlights include:

80% CAGR revenue growth over the last 3 years.

Rapidly growing customer base, including Administaff, Bank of China, St. Charles Health System and CVENT, and a record number of competitive displacements.

Awarded the first Department of Defense Unified Capabilities Approved Products List Certification for SIEM and Standalone IPS, enabling procurement by any DOD branch.

Strong analyst endorsement, notably being named a “Visionary” in Gartner’s 2010 Magic Quadrant for Security Information and Event Management. The 451 Group also lauded NitroView in a recent report as “one of the most useful and seamless incident response-focused Enterprise Security Information Management products available.”

Top ratings in major product reviews by InfoWorld and SC Magazine. InfoWorld ranked NitroView highest – with a score of 9.2 and an “Excellent” designation – and called out the product’s “wealth of log management functionality with outstanding versatility in graphs and views.” In SC Magazine, NitroView was the only product to achieve the coveted “Lab Approved” distinction and was cited as an “analyst’s power tool that also provides strong, day-to-day SIEM capabilities…”

The launch of NitroView CIP and partnership with NERC compliance specialist Encari, establishing the industry’s only end-to-end NERC CIP security and compliance solution at a time when critical infrastructure, such as the electrical grid, is becoming increasingly probed and targeted by malicious parties.

For more information on NitroView or other NitroSecurity offerings, please visit the company’s Web site at http://www.nitrosecurity.com.

About NitroSecurity

NitroSecurity develops high-performance security information and event management (SIEM) solutions that protect critical information and infrastructure. NitroSecurity solutions reduce risk exposure and increase network and information availability by removing the scalability and performance limitations of security information management. Utilizing the industry’s fastest analytical tools, NitroSecurity identifies, correlates and remediates threats in minutes instead of hours, allowing organizations to quickly mitigate risks to their information and infrastructure. NitroSecurity serves more than 500 organizations in the energy, healthcare, education, financial services, government, retail, hospitality and managed services industries. For more information, please visit http://www.nitrosecurity.com.