StackPath, the latest security-as-a-service startup on the market, today announced its acquisition of Highwinds, one of the oldest and largest Content Delivery Networks (CDN) in the world. This is an interesting move considering Highwinds is known to most as a legacy CDN that serves mostly gaming and media clients due to their high throughput performance. StackPath says Highwinds’ services and platform will be integrated with existing StackPath offerings to create a single global platform. This should be interesting considering they just acquired MaxCDN (among 3 other companies) in mid-2016. The acquisition puts StackPath at more than 300 employees and a staggering 20,000 CDN customers. The Highwinds acquisition also gives them one of the world’s largest global network backbones.
“We founded StackPath to make the internet safe. Merging Highwinds with StackPath not only serves that mission, it accelerates our progress towards it,” said Lance Crosby, CEO of StackPath. “Our two companies had the same view that CDN security and innovation hasn’t evolved as quickly as it needs to. Developers leverage CDNs for practically everything they’re building in the cloud these days—and for far more than simple content delivery. But CDNs still tend to be add-on services, not built-in. Merging Highwinds and StackPath technologies and teams gives us the scale, scope, and experience to more quickly bring the market an integrated, next-generation platform with unprecedented security advantages.”
Highwinds has been a major player in the CDN industry since the early days, with the company being founded of 2002. They lost some market share in the early 2010’s when a slew of startup CDNs entered the market, but came roaring back with a over $200 million in funding in 2013 which they invested in an upgraded network, an all new UI, and a big marketing push (particularly within the gaming market). The Highwinds CDN will immediately make the network capacity and footprint much larger for StackPath, given that MaxCDN’s network was relatively small in comparison.
“I’m as excited about the future of Highwinds as part of StackPath as I am proud of what we built,” said Steve Miller, Highwinds founder and CEO. “Each company’s strengths complements the other’s. StackPath has focused on WAF, DDoS mitigation, full website delivery, and frictionless customer experience. Highwinds has strong success in large-scale throughput, enterprise applications, and high-touch engagements. Bringing all of this together creates an even more complete, more compelling offering.”
So far we don’t know how much StackPath paid for Highwinds, but you can bet it was a pretty penny given the recent massive funding rounds Highwinds took in 2011 and 2013. Moving forward, the Highwinds team located in Winter Park, FL, will serve as the core of StackPath CDN engineering.
While StackPath is less than 2 years old and has been out of stealth for less than a year, this acquisition no doubt puts them into the billions in valuation. According to Crunchbase, the company has raised $180 million in private equity so far, which is substantial, but they must have significant revenue coming in when you consider they have now acquired Highwinds, Fireblade, Staminus, MaxCDN, and Cloak all within 1 year.
When you look at StackPath’s feature offering, pricing model, and marketing strategy it is pretty clear that they are gunning for CloudFlare with sights set on being the #1 security CDN/cloud security company in the world. It will be interesting to see if they can successfully integrate all these companies and products into a single cohesive platform, but if they can pull it off they may just become the CloudFlare alternative that people have been looking for.
StackPath provides inherently secure cloud services that enables developers to build safe solutions. Its platform leverages collaborative intelligence so that with every threat detected it makes each service smarter, more secure, and easier to use. More than 30,000 customers already use StackPath technology, ranging from Fortune 100 companies to early stage startups. Headquartered in Dallas, Texas, StackPath has offices across the U.S. and internationally.