Battery Ventures acquires GrammaTech’s software products
Lauren Wedell of Battery Ventures
GrammaTech announces that Battery Ventures has acquired its software products division, including CodeSonar and CodeSentry product lines. This transaction establishes an independent entity that will operate under CodeSecure, Inc., headquarters based in in Bethesda, Maryland. GrammaTech will continue to offer cyber security research and development services and tools to US defense and intelligence community.
This application security testing market (AST) is fast-growing, projected to show an annual growth rate (CAGR 2023-2028) of 12.83%, according to data provider Statista, resulting in a market volume of US$11 billion (€10.25 billion) by 2028. More organisations are buying this software as number of attacks on software supply chains increases, prompting them to build security into their software-development lifecycles earlier.
Battery investment will allow CodeSecure to operate with flexibility and grow its business in markets including automotive, aerospace and defense, medical devices, IoT, enterprise IT and financial services, all sectors in which code security and safety is imperative.
“We are excited to partner with the CodeSecure product team on its mission to enable developers to detect and fix vulnerabilities within their development pipelines, allowing them to accelerate critical DevSecOps deployments,” says Battery vice president Lauren Wedell, who is joining CodeSecure’s board. “We’re also looking forward to working with the team behind CodeSentry, a technology with multiple use cases, from detecting open-source vulnerabilities in third-party code to generating software bill of materials (SBOMs).”
Jordan Welu from Battery partner adds, “We’re extremely impressed with the company’s vision and execution in this market to date, and we look forward to helping the new company grow organically and, potentially, through acquisitions.”
“Software security is undergoing significant change and expansion; many organisations are creating their own product security teams and recognising that product safety is a critical function,” says Mike Dager, who will serve as CEO of CodeSecure. “With more than 40 years of experience growing some of the world’s most well-known software businesses, we feel Battery Ventures is the ideal partner to help us scale up the CodeSonar and CodeSentry product lines. They have the resources and are committed to our success. We are excited to be working with them.”
GrammaTech will continue to focus on growth and expansion of its core cyber security offerings and services to US Government Department of Defense and Intelligence Community under direction of Dan Goodwin, who was elevated to role of CEO of GrammaTech following acquisition of CodeSecure by Battery.
The Canaccord Genuity and McGuireWoods advised GrammaTech on transaction.
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