Lookout’s long-term transition to becoming an enterprise security company is now complete, revealing today that it is selling its consumer mobile security business to Finland’s F-Secure for around $223 million.
In the year In 2009, Boston-based Lookout launched a consumer-focused smartphone security and data backup business, amassing millions of users and hundreds of millions from respected investors such as Andreessen Horowitz, Accel, Greylock, Morgan Stanley, Deutsche Telekom, and Jeff Bezos.
Over the past 10 years, Lookout has gradually expanded its reach into the business realm, landing corporate partnerships with tech giants like Samsung along the way. A few years ago, Lookout went a long way toward bolstering its B2B credentials when it acquired cloud-native cybersecurity startup CyberCloud, a company at the burgeoning Secure Access Service Edge (SASE) security segment.
Fast forward to today, and while Lookout still offers security products for the consumer market, including smartphone antivirus software, it’s clear that the company’s direction in recent years has been getting too close, which is why it’s been downgraded so much. All the rest of the consumer business goes to F-Secure – a long-established European consumer cyber security company that sells everything from password management tools to antivirus applications.
With the transaction, which Lookout expects to complete within the next two months, the business will “now transform into a pure-play enterprise company” focusing on mobile endpoint security and cloud security. While it did not disclose how much it raised for the utilities business, it said the proceeds, along with $150 million in debt financing from BlackRock last summer, will be plowed into its enterprise products.
“Our success in the highly competitive enterprise market has forced us to focus our product and go-to-market efforts,” Lockout CEO Jim Dolls said in a press release. “By doubling down on the enterprise market, we are well-positioned to drive significant growth projected by the rise of remote and hybrid workloads, cloud-based delivery models, and the shift to zero-trust architectures.”
For F-Secure, the deal gives it a particularly strong position in the US market, as well as strengthening its existing consumer software line with a set of exactly the same products.
Timo Laaksonen, CEO of F-Secure, said in a statement: “We are looking for growth both organically and through acquisitions, in line with F-Secure’s strategy. “The acquisition of Lookout’s consumer business unit is a significant step in growing our business in the United States. With an additional software product portfolio and strong capabilities to develop mobile products, Lookout’s consumer business unit is a perfect fit for F-Secure.
*This article has been updated following a consensus review and additional feedback from F-Secure..