Moody’s to invest US$250 million in cybersecurity firm BitSight

Moody’s Corporation, the global integrated risk assessment firm said that it will invest US$250 million in cybersecurity firm BitSight.

As a part of the deal, BitSight, a pioneer in cybersecurity ratings, and BitSight will acquire VisibleRisk, a cyber risk ratings joint venture created by Moody’s and Team8, a global venture group. This significant investment by Moody’s, will further enhance BitSight’s offerings and capabilities, to create a comprehensive, integrated, cybersecurity risk platform.

Following the transaction close, Moody’s will become the largest shareholder of BitSight, with a minority stake in the company. This transaction reflects the increasing strategic, financial, and operational impact of cyber risk to organisations and markets, Moody’s said.

Rise in cyber attacks

Over the past 18 months, the exponential rise of cyber attacks and ransomware has cost organizations hundreds of billions of dollars, threatened the stability and reputation of businesses across the globe, and created an imperative for business leaders and boards to assess and quantify their cyber risk.

A Moody’s Investors Service review of cyber vulnerability and impact identified 13 sectors with high or medium-high risk with total rated debt exceeding $20 trillion, which is more than the size of the entire US and India’s economy combined.

“As organisations invest in cyber defense and resilience, another critical need has emerged: the ability to accurately measure and quantify cyber risk and exposure,” said Rob Fauber, President and Chief Executive Officer of Moody’s.

“Creating transparency and enabling trust is at the core of Moody’s mission – to help organizations assess complex, interconnected risks and make more informed decisions. BitSight is the leader in the cybersecurity ratings space, and together we will help market participants across disciplines better understand, measure, and manage their cyber risks and translate that to the risk of financial loss.”

BitSight helps global market participants understand cyber risk through ratings, analytics, and performance management tools, delivering unique insights for over 2,300 global customers, including many Fortune 500 companies, government agencies, insurers, and asset managers. Moody’s will leverage BitSight’s extensive cyber risk data and research across its growing suite of integrated risk assessment product offerings.

BitSight’s acquisition of VisibleRisk adds a unique in-depth cyber risk assessment capability and advances its ability to analyse and calculate an organisation’s financial exposure to cyber risk. The transaction values BitSight at $2.4 billion, reflecting the company’s leadership in a rapidly growing data and analytics market.

“Cybersecurity is one of the biggest threats to global commerce in the 21st century,” said Steve Harvey, President and Chief Executive Officer of BitSight. “Our partnership with Moody’s and acquisition of VisibleRisk expands our reach to help customers manage cyber risk in an increasingly digital world.”

Publish on W.Media
Author Info - W.Media
Share This Article
Other Popular Posts