Toronto-based password management startup 1Password has acquired Boston-based contextual access management firm Kolide for an undisclosed amount.
The transaction will see Kolide’s entire 30-person team join 1Password, and will bring new employee device security to 1Password’s offerings. Following the deal, Kolide CEO Jason Meller has taken on the role of vice president of product at 1Password, according to 1Password CEO Jeff Shiner.
Kolide’s platform looks to address security in the era of remote work, where employees often access company applications from multiple devices.
With Kolide, employees accessing a company application from an untrusted or insecure device will be blocked from logging in, then prompted with instructions to secure their device without the need for IT or security teams.
“When we first began looking at possible M&A opportunities in this space, Kolide’s solution stood out for their contextual access management capabilities,” Shiner told BetaKit. “As I got to know more about Kolide, and Jason Meller in particular, it became clear that we have strong philosophical alignment in our approach to privacy and security.”
Shiner added in a statement that Kolide’s contextual access management and device health capabilities to the 1Password security suite will “help businesses of all sizes close gaps in their security posture and achieve zero trust access objectives.”
According to the Canadian Centre for Cyber Security, zero trust access is an organizational security framework that assumes no application, user, or device can be trusted by default, requiring all in a network to be continuously vetted to gain and maintain access.
1Password has been moving away from its roots in strictly password management, pushing companies to take on passkeys following its acquisition of Passage in November 2022. Passkeys enable users to log into apps or websites with a pre-authenticated device, using a cryptographic token instead of a password.
RELATED: How 1Password plans to build a passwordless future
In 2023, 1Password launched its passkeys for businesses offering and celebrated hitting $250 million in annual recurring revenue and 50 percent year-over-year growth in B2B sales. In September 2023, 1Password enlisted David Faugno as its first-ever president and COO, who was tasked with scaling 1Password to new markets and product offerings.
Kolide, founded by Meller in 2016, raised a $17-million USD Series B round in 2021, bringing the company’s total funding at the time to $27 million USD. The round was led by OpenView Partners and featured participation from Matrix Partners, who previously led Kolide’s Series A round.
Kolide’s Series B round followed the publishing of Meller’s Honest Security manifesto in 2020, described as “a guide to endpoint security and device management that doesn’t erode your values.” Shiner told BetaKit that the guide resonated deeply with the 1Password team.
“We are combining forces with 1Password for one reason: we both believe every company needs user-focused device security,” Meller said in a statement. “With 1Password, we now have the resources to make that belief a reality.”
This marks 1Password’s third acquisition to date. Shiner told BetaKit the company plans to continue to “grow and invest,” and expects to add more than 250 new positions in 2024.
Feature image courtesy 1Password.