Toronto-based password management company 1Password has acquired United Kingdom software-as-a-service (SaaS) startup Trelica to expand the capabilities of its Extended Access Management (XAM) platform.
1Password launched its XAM offering last year to help businesses “secure every sign-in for every app on every device.” 1Password’s strategic acquisition of Trelica gives the firm access to technology that enables security teams to discover and manage access to previously unknown and unmanaged applications.
With the deal, 1Password hopes to bring these “shadow IT discovery capabilities” to its corporate XAM customers faster than if it had built the same tech in-house. The financial terms of the cash-and-stock transaction were not disclosed. 1Password declined to share the purchase price with BetaKit.
Despite a recent report, Shiner claimed 1Password has not made any specific decisions regarding when to go public.
1Password co-CEO Jeff Shiner described Trelica as “a pioneer in modern SaaS access management.” In an interview with BetaKit, he said, “They’ve got great technology, great people, a great solution.”
Trelica’s entire 23-person team is joining 1Password as part of the deal, which closed on Dec. 30 and marks 1Password’s fourth acquisition to date following its purchases of SecretHub, Passage, and Kolide.
Shiner claimed that Trelica represents 1Password’s largest-ever acquisition by company revenue, but declined to share exact figures.
Founded in 2005 and formally known as AgileBits, 1Password is one of Canada’s most valuable tech companies. 1Password sells identity security and access management software to over 150,000 businesses and millions of consumers, helping individuals and clients like Aldo Group, Associated Press, Canva, IBM, Intercom, Salesforce, and Under Armour secure sign-ins to applications and websites.
1Password has raised $920 million USD in total funding to date from a group that includes Accel, Iconiq Growth, Lightspeed Venture Partners, Salesforce Ventures, and Tiger Global, among others. The company most recently closed a $620-million Series C round at a $6.8-billion valuation in early 2022.
In November, Bloomberg reported that 1Password was interviewing banks with an eye towards an initial public offering (IPO), and aiming to go public in 2025. At the time, 1Password co-CEO David Faugno—who was promoted to the role last fall—told Bloomberg that 1Password had not made any decisions regarding IPO timing or an underwriter.
“While we expect to become a public company someday and are taking steps to prepare for that possibility, we have not made any specific decisions about timing, nor have we engaged in discussions with banks about underwriting or any related activities,” Shiner told BetaKit. “We’re fortunate to be in a position where we can chart our own course and determine the timing and path forward.”
As BetaKit has reported, some experts expect the IPO market to open in 2025. If that happens, The Globe and Mail reports that a number of scaled-up Canadian tech companies are waiting in the wings.
1Password may be one of them, having surpassed $250 million USD in annual recurring revenue (ARR) in fall 2023, with business-to-business (B2B) sales at the time up 50 percent year-over-year and accounting for two-thirds of 1Password’s total revenue.
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Shiner declined to share updated ARR or growth metrics with BetaKit, but did indicate that 1Password’s B2B business is now responsible for generating nearly three-quarters of its overall revenue. He claimed that 1Password remains cash-flow positive and well capitalized.
According to 1Password’s 2024 State of Enterprise Security Report, one in three employees use unapproved apps and tools to boost productivity. The rise of this so-called “shadow IT” is part of the reason 79 percent of security professionals say that they do not feel their security protections are adequate, according to the report.
Unmanaged devices, such as public devices and employees’ personal phones and computers, and applications accessing company data without proper governance controls and oversight by security teams can expose organizations to data breaches, ransomware attacks, and other forms of unauthorized access.
Enter Trelica, which helps identify unmanaged apps, streamline user provisioning, de-provisioning, and access governance, and boost adherence to security policies.
RELATED: 1Password alters leadership and appoints David Faugno as co-CEO alongside Jeff Shiner
Shiner claimed that 1Password looked at over 30 solutions to help accelerate its XAM plans before landing on Trelica, which it initially began speaking with about a potential partnership before realizing that the two companies could do more together if they just joined forces.
According to Shiner, Trelica’s focus on usability and helping people use their choice of software also aligns well with 1Password’s vision. “Businesses need to enable that, but in a way that they can still stay safe,” he added.
The real value, Shiner said, will come in combining Trelica’s shadow IT tech into 1Password’s more fulsome XAM platform and its existing enterprise password management and device trust capabilities. “That will really bring to bear that full solution that the business is looking for from a security point of view,” he added.
Trelica will continue to support existing customers going forward. While completing the integration of Trelica will take some time, Shiner expects this acquisition to accelerate 1Password’s XAM product roadmap by over a year.
“It will very much be the proverbial one plus one equals three,” he said.
Feature image courtesy 1Password.