Investment intended to drive growth at CodeSecure, which will retain the CodeSonar® and CodeSentry® product lines
BETHESDA, Md., Sep. 5, 2023 — GrammaTech, a high-profile provider of application security testing products and software research services, today announced that Battery Ventures has acquired its software products division, including the CodeSonar and CodeSentry product lines. The transaction establishes a new, independent entity that will operate under the CodeSecure, Inc. name and be headquartered in Bethesda, Maryland. GrammaTech will continue to offer cyber security research and development services and tools to the US defense and intelligence community.
The 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$11bn by 2028. More organizations are buying this software as the number of attacks on software supply chains increases, prompting them to build security into their software development lifecycles earlier. The Battery investment will allow CodeSecure to operate with greater 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,” said 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).”
Added Battery Partner Jordan Welu, who is also joining the company’s board: “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 organizations are creating their own product security teams and recognizing that product safety is a critical function,” said 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 the growth and expansion of its core cyber security offerings and services to the US Government Department of Defense and Intelligence Community under the direction of Dan Goodwin, who was elevated to the role of CEO of GrammaTech following the acquisition of CodeSecure by Battery.
Canaccord Genuity and McGuire Woods advised GrammaTech on the transaction.
About CodeSonar and CodeSentry
CodeSecure CodeSonar is a SAST (Static Application Security Testing) solution that enables developers to create and release high quality, secure software. CodeSonar promotes a shift-left approach that ensures developers can implement security early and throughout the Software Development Life Cycle (SDLC), without impacting innovation or slowing time-to-market.
CodeSecure CodeSentry software supply chain security platform gives organizations the ability to produce SBOMs and detect security vulnerabilities “under the hood” in third party code. CodeSentry uses binary software composition analysis (BSCA) to identify known threats (CVEs) and common weakness enumeration (CWE) errors in externally developed software components without access to source code. CodeSentry also plays a valuable role in helping organizations meet emerging federal standards for cyber security.
CodeSecure is a leading global provider of application security testing (AST) solutions used by the world’s most security conscious organizations to detect, measure, analyze and resolve vulnerabilities for software they develop or use. CodeSecure products enable rapid DevSecOps deployments while also securing their software supply chains. CodeSecure has corporate headquarters in Bethesda MD and publishes Shift Left Academy, an educational resource for product software developers. Visit us at http://www.codesecure.com and follow us on LinkedIn and Twitter.
Battery partners with exceptional founders and management teams developing category-defining businesses in markets including software and services, enterprise infrastructure, consumer tech, healthcare IT and industrial technology and life-science tools. Founded in 1983, the firm backs companies at all stages, ranging from seed and early to growth and buyout, and invests globally from offices in Boston, San Francisco, Menlo Park, New York, London and Tel Aviv. Follow the firm on Twitter @BatteryVentures, visit our website at www.battery.com and find a full list of Battery’s portfolio companies here.
CodeSonar® and CodeSentry® are registered trademarks of CodeSecure, Inc.