"The rise of AI coding tools means developers can create software applications faster than ever, but the risk for hacks and exploits is growing in lockstep. ThreatModeler, a cybersecurity company that helps developers identify vulnerabilities in their applications, announced on Thursday it is acquiring its largest competitor, IriusRisk. The deal is for over $100 million, according to a source with direct knowledge, who added that the annual recurring revenue for the combined companies is around $50 million."
"In an interview with Fortune, ThreatModeler CEO Matt Jones said that his company's goal is to "democratize" the practice of vulnerability detection at a time when many must rely on basic tools from larger platforms like Microsoft or turn to AI for threat modeling, which Jones argues is insufficient and can lead to massive risks. Jones said the acquisition will let ThreatModeler keep pace as firms are scaling up their coding capacity like never before."
AI coding tools are accelerating software development while increasing exposure to hacks and exploits. ThreatModeler acquired Spain-based IriusRisk for over $100 million, creating a combined business with about $50 million in annual recurring revenue. The company aims to democratize vulnerability detection as many organizations still rely on basic platform tools or AI-driven threat modeling that may be insufficient. The acquisition is intended to accelerate the product roadmap and match rapidly scaling coding capacity. ThreatModeler, founded in 2010 in New Jersey, provides automated pre-release security review software. Invictus became majority investor after 2024 funding. The acquisition closed at the end of 2025 following earlier litigation.
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