MSSP Market News: Acquisitions, AI Security, and Platform Extension

This week’s headliner came today – Accenture’s big move on CyberCX. Accenture’s move to acquire CyberCX shows tow main things – accelerated consolidation in cybersecurity + the value in pairing local threat intelligence and compliance know-how with global scale, especially in Asia Pacific, where regulations and threats keep shifting.On the startup front, Archestra, ACT, and NightVision are all tackling the balance between AI innovation and risk, whether that’s securing AI agents, closing action gaps in cloud security, or speeding up app testing without adding friction. The 1Kosmos funding round points to growing demand for passwordless, user-controlled identity, while the ArmorPoint-CIT partnership reflects the push for partner-friendly SOC models that work with existing tools instead of ripping them out. Even 1Password’s MSP-focused launch on Pax8 fits the pattern: security offerings designed for how providers actually run their businesses, not just the technology they use.

Market Pulse: Cybersecurity Deals, Funding, and Platform Shifts

Accenture to acquire CyberCX: Accenture is set to acquire Melbourne-based CyberCX, its largest cybersecurity deal to date, in a move to expand its footprint across Asia Pacific’s security services market. Founded in 2019, CyberCX has 1,400+ specialists, security operations centers in Australia and New Zealand, and services spanning threat intelligence, MDR, identity and access, and cyber-physical security. The deal, Accenture’s 21st security acquisition since 2015, aims to pair global resources with local expertise in a region facing evolving threats and stricter compliance. Terms were not disclosed, pending regulatory approval.1Kosmos secures $57 million in Series B funding: 1Kosmos has secured $57 million in Series B funding to expand its passwordless identity platform, Verify, which combines biometric identity proofing, multifactor authentication, and blockchain-based data storage. The platform uses AI to verify IDs and documents without requiring app downloads, replacing passwords and fragmented MFA with a unified, adaptive system for both workforce and customer access. A digital identity wallet helps enterprises reduce fraud and improve user experience while keeping users in control of their data.Archestra secures $3.3M for secure AI Agent deployment: Archestra has raised $3.3 million in pre-seed funding to advance its open-source platform designed for secure deployment of enterprise AI agents. Backed by Zero Prime Ventures, Celero Ventures, RTP Global Management, and Aloniq, the platform serves as an “MCP orchestrator,” enabling nontechnical teams to connect AI agents to enterprise data through the Model Context Protocol (MCP). Archestra mitigates security and compliance risks with layered security, orchestration, and dynamic permissions, limiting access to reduce data leaks and violations.

Medigate’s founders launch a new stealth cybersecurity venture, ACT: The founders of Medigate, which Claroty acquired in 2021 for roughly $400 million, have started a new cybersecurity venture called ACT. Still in stealth mode, ACT has secured $20 million in seed funding from Team8 and Bessemer Venture Partners. ACT will target cloud security, aiming to go beyond basic visibility and vulnerability reporting by giving security teams tools to take direct, effective action to reduce risk in cloud environments.

NightVision raises $5.4 million in seed funding: NightVision has raised $5.4 million in seed funding to advance its gray-box application security testing platform. The company’s approach is designed to give developers fast, simple, and thorough vulnerability detection across the entire software development lifecycle. By integrating directly into existing workflows, NightVision enables teams to identify and remediate exploitable issues in APIs and web applications before they reach production – avoiding the delays and complexity common with traditional DAST and SAST tools. The platform aims to address the growing security gap as development speeds up, especially with AI-assisted coding, helping organizations focus on real threats rather than false positives.ArmorPoint and CIT partner to expand managed cybersecurity services: CIT has teamed up with ArmorPoint to expand its managed cybersecurity services, giving customers broader protection without the cost or complexity of building new infrastructure. By integrating ArmorPoint’s managed SOC, vulnerability management, advisory services, and proprietary SIEM, CIT can scale security offerings, serve more clients, and enter regulated industries with confidence. ArmorPoint’s integration-first approach lets partners keep existing security tools while unifying them under its SOC, avoiding disruption and reducing costs.1Password launches Enterprise Password Manager for MSPs: 1Password has launched its Enterprise Password Manager – MSP Edition on the Pax8 Marketplace, giving more than 40,000 MSPs worldwide a dedicated tool to secure access, protect client data, and streamline operations. Built for multi-tenant management, the solution offers dual-key encryption, MFA, granular permissions, and integrations with Entra ID, Okta, JumpCloud, and SIEM tools, while aligning to MSP billing models.Have news to share or just want to connect? Reach us anytime at [email protected] or [email protected].