1Password could be 1Step closer to going public.
What happened: Canadian cybersecurity company 1Password is acquiring the New York-based firm Apono for an undisclosed amount. It’s the unicorn’s fifth acquisition and third in the past three years.
Apono provides tools that can determine when and for how long parties have access to corporate credentials, a capability 1Password will integrate into its new platform for companies deploying AI agents.
Catch-up: 1Password is primarily known for providing secure password management for corporate clients big and small. Over the years, it has substantially grown the scope of its product, crossing the US$400 million threshold for annual recurring revenue last year.
Why it matters: In November, CEO David Faugno told BetaKit “we could be public today,” but the firm wants to bolster its offerings to keep up with the AI landscape, providing “a level of predictability” for future investors. This deal will help the company meet that goal, which could result in one of the biggest Canadian IPOs in recent memory.
The company is one of 80 or so private Canadian tech firms with revenue at or above US$100 million that investors are hoping could reignite Canada’s IPO market.
Our take: With many companies now going public with business cases relying so much on hypotheticals (we can think of one recent example), it’s nice to see a Canadian company with a proven business model actually building on top of what it already has before taking the leap.—QH
