Keyfactor, a US-based identity management software developer backed by carmaker General Motors (GM), agreed yesterday to merge with Sweden-headquartered peer PrimeKey.
The transaction will be boosted by a $125m funding round led by Insight Partners, the growth equity firm that had previously led a $77m round for Keyfactor in 2018.
Founded in 2001, Keyfactor provides software which combines cloud-based internet encryption technology called public key infrastructure (PKI) with certificate lifecycle automation capabilities, while PrimeKey offers open-source PKI certificate authority software.
The merged entity will operate under the Keyfactor brand and provide end-to-end machine identity management services. It will be led by Keyfactor CEO Jordan Rackie while PrimeKey CEO Magnus Svenningson will be chief strategy officer and executive vice-president of business development.
Formerly known as Certified Security Solutions, Keyfactor had raised $2.5m from an undisclosed investor in 2017 having pulled in $4.4m of funding from backers including General Motors subsidiary GM Ventures and Plymouth Ventures the year before.
The company had previously received $690,000 from unnamed investors in 2009, according to regulatory filings. Its earlier backers include Generation Ventures. PrimeKey has not revealed details of its financing prior to the merger agreement.