Darktrace

{{Use dmy dates|date=January 2023}} {{Infobox company | name = Darktrace Holdings Ltd | logo = Darktrace logo.png | former_name = {{Nowrap|Darktrace Ltd (2013 - 2021)<ref name=ch>{{cite web| url=https://find-and-update.company-information.service.gov.uk/company/08562035|title=Darktrace Limited |website=Companies House |access-date= 21 March 2021}}</ref>}} | type = [[Privately held company|Private]] | traded_as = {{LSE was|DARK}} | key_people = Gordon Hurst ([[Chairman]])<br>Ed Jennings ([[CEO]]) | services = [[Cybersecurity]] | homepage = {{URL|https://darktrace.com}} | foundation = {{start date and age|2013}}<ref name=ch/> | location = [[Cambridge]], United Kingdom<ref name="auto1">{{Cite web|url=https://www.forbes.com/companies/darktrace/|title=Darktrace: Company Overview & News|website=Forbes|access-date=31 January 2025}}</ref> | revenue = {{nowrap|{{increase}} {{US$|545.4 million|link=yes}} (2023)<ref name="results">{{cite web |url=https://ir.darktrace.com/download/Darktrace_Annual_Report_FY2023_Web.pdf |title=Annual Report 2023 |publisher=Darktrace |access-date=12 February 2024}}</ref>}} | operating_income = {{increase}} {{US$|36.5 million}} (2023)<ref name=results/> | net_income = {{increase}} {{US$|59.0 million}} (2023)<ref name=results/> | assets = {{increase}} {{US$|751.9 million}} (2023)<ref name=results/> | equity = {{decrease}} {{US$|263.5 million}} (2023)<ref name=results/> | num_employees = 2,269 (2023)<ref name="results"/> | owner = [[Thoma Bravo]] (2024–) }} '''Darktrace Holdings Ltd''' is a British [[cyber security]] company, established in 2013 and headquartered in [[Cambridge]], United Kingdom<ref>{{Cite web |title=Cambridge to remain power base for Darktrace after $5.315bn US acquisition |url=https://www.businessweekly.co.uk/posts/cambridge-to-remain-power-base-for-darktrace-after-5315bn-us-acquisition |access-date=2025-02-18 |website=www.businessweekly.co.uk |language=en}}</ref> with further global office locations in [[London]], [[San Francisco]], and [[Singapore]].<ref name="auto1"/> It was listed on the [[London Stock Exchange]] until it was acquired by American [[private equity firm]] [[Thoma Bravo]] in October 2024.<ref name=":5" />

==History== ===Origins=== Darktrace was founded in 2013 in Cambridge, where the Darktrace AI Research Centre is based, with the company's second R&D centre located in [[The Hague|The Hague, Netherlands]].<ref>{{Cite web|url=https://darktrace.com/company|access-date=2023-05-08|title=Company Overview}}</ref> It was founded by mathematicians and cyber defence experts at Invoke Capital, a company owned by [[Mike Lynch (businessman)|Mike Lynch]].<ref name="After Autonomy">{{Cite news|date=2013-09-21|title=After Autonomy|newspaper=The Economist|url=https://www.economist.com/britain/2013/09/21/after-autonomy|access-date=2021-09-28|issn=0013-0613}}</ref><ref name=":4">{{Cite web|title=Darktrace, The Cyber Security Startup Backed By Mike Lynch, Raises Further $18M|url=https://techcrunch.com/2015/03/17/darktrace/|access-date=2021-09-28|website=TechCrunch|date=18 March 2015 |language=en-US}}</ref>

Many of Darktrace's management personnel, including former chief executive [[Poppy Gustafsson]], chief technology officer Jack Stockdale, and chief strategy and artificial intelligence officer Nicole Eagan, were recruited from Autonomy.<ref name="After Autonomy"/>

===Listing=== In April 2021, Darktrace listed on the London Stock Exchange with a market value of circa £2.5 billion.<ref name=":1">{{cite news |last1=Bradshaw |first1=Tim |date=30 April 2021 |title=Darktrace shares jump 32% in IPO |url=https://www.ft.com/content/325059d4-a24c-4d4c-9fdb-0214179fc822 |access-date=7 June 2021 |website=The Financial Times}}</ref><ref name=":2">{{cite web |date=3 June 2021 |title=Darktrace: What we learned from building a £2.5bn UK success story |url=https://www.cityam.com/darktrace-what-we-learned-from-building-a-2-5bn-uk-success-story/ |access-date=7 June 2021 |website=City A.M.}}</ref> The market value reached a peak of £7 billion within months, with a share value peak of £10, but later fluctuated. On 6 March 2022, Darktrace opened with a share value of £6.46, with a market cap of £3.43 billion.<ref name=":3">{{Cite web |title=Darktrace PLC (DRKTF) Stock Price & News - Google Finance |url=https://www.google.com/finance/quote/DRKTF:OTCMKTS |access-date=2022-03-09 |website=www.google.com |language=en}}</ref>

In March 2022, Darktrace acquired Cybersprint, a Dutch [[attack surface]] management company, for €47.5{{nbsp}}million.<ref>{{Cite web |last=Osborne |first=Charlie |date=2022-02-24 |title=Darktrace acquires attack surface analytics firm Cybersprint |url=https://www.zdnet.com/article/darktrace-acquires-attack-surface-analytics-firm-cybersprint/ |website=[[ZDNet]] |language=en}}</ref>

Poppy Gustafsson stepped down as chief executive officer (CEO) in September 2024.<ref>{{Cite news |last=Sandle |first=Paul |date=6 September 2024 |title=Darktrace CEO Poppy Gustafsson steps down |url=https://www.reuters.com/technology/cybersecurity/darktrace-says-ceo-poppy-gustafsson-steps-down-2024-09-06/ |publisher=Reuters}}</ref> She was succeeded by former chief operating officer (COO) Jill Popelka, who has also been appointed to the Darktrace Board of Directors.<ref>{{cite web|url=https://www.morningstar.co.uk/uk/news/AN_1725610424936351400/top-news-darktrace-promotes-popelka-as-ceo-gustafsson-steps-down.aspx |title=Darktrace promotes Popelka as CEO Gustafsson steps down|date=6 September 2024|newspaper=Morning Star|access-date=15 October 2024}}</ref>

At the beginning of 2025, the company announced that it had acquired Cado Security, a firm specializing in investigations in the context of cyberattacks.<ref>{{Cite web |date=January 10, 2025 |title=Avec le rachat de Cado Security, Darktrace autopsie les cyberattaques |url=https://www.lemondeinformatique.fr/actualites/lire-avec-le-rachat-de-cado-security-darktrace-autopsie-les-cyberattaques-95721.html |website=Le Monde Informatique |language=fr}}</ref>

===Short seller report=== On 31 January 2023, Quintessential Capital Management, a New York-based [[hedge fund]] and short seller, published a detailed report alleging potential accounting errors at Darktrace, making claims about potential irregularities in contracts with resellers and customers, predominantly dating from before Darktrace's public listing in 2021.<ref name="Patel 2023">{{cite web |last=Patel |first=Anviksha |title=Darktrace stock falls after New York short seller takes stake |website=MarketWatch |date=2023-01-31 |url=https://www.marketwatch.com/story/darktrace-stock-falls-after-new-york-short-seller-takes-stake-11675165805 |url-access=subscription |access-date=2023-01-31}}</ref> Darktrace has disputed this.<ref name="Maatouk 2023">{{cite web |last=Maatouk |first=Michele |title=Darktrace hits back after short seller takes stake |website=Sharecast |date=2023-01-31 |url=https://www.sharecast.com/news/news-and-announcements/darktrace-hits-back-after-short-seller-takes-stake--12148048.html |access-date=2023-01-31}}</ref> Quintessential pointed towards connections between Darktrace and [[HP Autonomy]], the UK software company with which Darktrace shares many ties. Autonomy was accused of irregular accounting practices relating to its $11.7bn sale to Hewlett-Packard in 2011.<ref>{{cite news|url=https://www.sharesmagazine.co.uk/news/shares/darktrace-down-5-as-new-york-hedge-fund-launches-fresh-bear-raid|title=Darktrace down 5% as New York hedge fund launches fresh bear raid|date=31 January 2023|newspaper=Shares Magazine|access-date=31 January 2023}}</ref>

The company's share price fell 12 per cent when Quintessential first disclosed its short position on 30 January 2023. The shares then fell a further 8 per cent the following day, after the report was published, down to 200p.<ref name="Financial Times 2023">{{cite web | title=Darktrace shares dive after short seller attack | website=Financial Times | date=2023-01-31 |url=https://www.ft.com/content/0fc364af-5748-4875-bf2e-02268b7471e4 |url-access=subscription |access-date=2023-01-31}}</ref>

On 18 July 2023, [[Ernst & Young|EY]] concluded its review into the company's contracts and internal financial processes. EY found a “''small number of errors and inconsistencies''” with some of the contracts but nothing that would be “''material''” to Darktrace's financial statements.<ref name="CNBC 2023">{{cite web | title=Darktrace shares pop 26% after EY concludes report into accounting allegations | website=CNBC | date=2023-07-18 |url=https://www.cnbc.com/2023/07/18/darktrace-shares-pop-26percent-after-ey-concludes-accounting-review.html | access-date=2023-07-18}}</ref>

=== Takeover === In April 2024, the private equity business, [[Thoma Bravo]], offered to acquire the company for $5.3 billion.<ref>{{cite news|url=https://www.reuters.com/markets/deals/thoma-bravo-buy-uks-darktrace-about-532-billion-2024-04-26/ |title=Thoma Bravo to buy UK's Darktrace for around $5.3 bln|date=26 April 2024|newspaper=Reuters|access-date=26 April 2024}}</ref> The takeover was approved by the UK Court in September 2024, allowing the transaction to complete.<ref>{{cite news|url=https://cbonds.com/news/3074503/|title=UK Court Clears Thoma Bravo's Takeover of Darktrace plc|date=24 September 2024|newspaper=CBonds|access-date=1 October 2024}}</ref> On 1 October 2024, it was announced that Thoma Bravo had formally completed its acquisition of the firm.<ref name=":5">{{Cite web|url=https://fortune.com/europe/2024/10/01/thoma-bravo-closes-5-3-billion-darktrace-acquisition-weeks-after-founding-investor-mike-lynchs-death/|title=Thoma Bravo closes $5.3 billion Darktrace acquisition weeks after founding investor Mike Lynch's death|work=Fortune|last=Hogg|first=Ryan|date=2024-10-01|access-date=2024-10-03|language=en}}</ref>

In January 2026, Jill Popelka was replaced as CEO after just 16 months in the role.<ref>{{Cite web |date=2026-01-27 |title=Darktrace boss Jill Popelka forced out after just 16 months |url=https://www.thetimes.com/business/technology/article/darktrace-boss-jill-popelka-forced-out-after-just-16-months-xh7qm30dg |access-date=2026-01-27 |website=www.thetimes.com |language=en}}</ref> In March 2026, Ed Jennings assumed the role of chief executive of the company.<ref>{{Cite web |last=Dorrell |first=Chris |date=2026-03-22 |title=Darktrace’s new boss has work to do as revenue growth slows |url=https://www.thetimes.com/business/technology/article/darktrace-boss-ed-jennings-jill-popelka-nd077m2qr |access-date=2026-03-24 |website=www.thetimes.com |language=en-GB}}</ref>

==Products== Darktrace's product uses unsupervised [[machine learning]] techniques to build an intrinsic "pattern of life" for every network, device, and user within an organisation. From this evolving understanding of 'normal', it can then detect potential threats as they emerge in real time.<ref>Greene, Tim (9 March 2017). “[https://www.networkworld.com/article/961228/darktrace-finds-more-attacks-cuts-response-time-saves-money-for-blackhawk-network.html Darktrace finds more attacks, cuts response time, saves money for Blackhawk Network].” ''Network World''. Retrieved 13 June 2017.</ref> It employs an autonomous response technology, Antigena, to take action against in-progress cyber-attacks.<ref>Kobie, Nicole (4 April 2017). “[https://www.wired.co.uk/article/darktrace-machine-learning-security Darktrace's AI is now automatically responding to hacks – and stopping them.]” ''[[Wired (magazine)|Wired]]''. Retrieved June 13, 2017.</ref><ref>{{Cite news |date=2 April 2018 |title=Losses widen at security start-up Darktrace as it embarks on hiring spree |publisher=The Telegraph |url=https://www.telegraph.co.uk/technology/2018/04/02/losses-widen-cyber-security-start-up-darktrace-embarks-hiring/ |access-date=2 April 2018}}</ref> The product also visualises network activity on a user interface, called the 'Threat Visualiser'.<ref>Hamblen, Matt. (5 Dec 2016). “[http://www.computerworld.com/article/3147017/security/behavior-analytics-tools-for-cybersecurity-move-into-enterprises.html Behavior analytics tools for cybersecurity move into enterprises.]” ''[[Computerworld]]''. Retrieved June 13, 2017.</ref>

Darktrace has claimed that it has the capability to defend against [[Zero-Day Attack|zero-day attacks]], for example during the [[Log4Shell|log4j vulnerability exploits]].<ref name=":0">{{cite news |date=22 March 2022 |title=Darktrace AI Stops Cyberattack Exploiting Log4j Vulnerability at Global Financial Services Provider |url=https://www.darkreading.com/attacks-breaches/darktrace-ai-stops-cyberattack-exploiting-log4j-vulnerability-at-global-financial-services-provider |access-date=4 August 2022 |publisher=Dark Reading}}</ref>

In the wake of the pandemic, Darktrace reported rising demand for its technology as sophisticated cyber attacks surged.<ref>{{Cite web |date=2021-02-05 |title=Rising demand for Darktrace technology {{!}} SJ UK |url=https://securityjournaluk.com/rising-demand-for-darktrace-cyber-tech/ |access-date=2024-10-15 |language=en-GB}}</ref>

==Sponsorship== Darktrace signed a partnership deal with [[McLaren|McLaren Racing]] in 2020.<ref>{{Cite web |title=Darktrace signs to McLaren for 2020 F1 season |url=https://www.computerweekly.com/news/252477949/Darktrace-signs-to-McLaren-for-2020-F1-season |access-date=2022-10-10 |website=ComputerWeekly.com |language=en}}</ref> In 2021, the deal was extended to include [[Arrow McLaren SP|McLaren's IndyCar team]].<ref>{{Cite web |title=McLaren Racing - McLaren Racing announces extended and enhanced partnership with Darktrace |url=https://www.mclaren.com/racing/partners/darktrace/mclaren-racing-announces-extended-and-enhanced-partnership-darktrace/ |access-date=2022-03-09 |website=www.mclaren.com |language=en}}</ref>

==References== {{Reflist}}

{{DEFAULTSORT:Darktrace}} [[Category:Technology companies based in Cambridge]] [[Category:Companies based in San Francisco]] [[Category:Companies formerly listed on the London Stock Exchange]] [[Category:British companies established in 2013]] [[Category:2013 establishments in England]] [[Category:2021 initial public offerings]] [[Category:2024 mergers and acquisitions]] [[Category:Thoma Bravo companies]] [[Category:Computer security companies]]