8KMiles, one of, is paying $7.5 million to acquire FuGen Solutions, a cloud identity services broker.
Suresh Venkatachari, chairman and CEO of 8KMiles, said the union developed out of a need among his company's government and large enterprise customers for streamlined identity access management services that help consolidate authentication and security across multiple cloud services and applications. "It really complements our solutions," he said during a phone interview to discuss the pending merger.
Currently, FuGen Solutions is working on multiple pilot programs and proof of concept projects centered on solving the need for cloud credentials across multiple cloud platforms — especially with financial services firms and government agencies.
After the integration, FuGen Solutions founder and CEO Lena Kannappan will become 8KMiles chief operating officer and serve on the company's board of directors. He will lead the combined company's cloud identity federation practice. Among other things, the company will work on single sign-on solutions that combine the capabilities of the two companies.
"8KMiles has deep expertise in secure cloud solutions, meeting important security qualifications such as FISMA in key verticals such as government and more," said Venkatachari, in a statement about the acquisition. "Our acquisition of FuGen Solutions will further enhance our security services platform in the cloud, while offering innovative, complementary security measures such as identity and access management to help streamline authentication across multiple cloud-based business systems."
The development will mark the first of several planned acquisitions for 8KMiles this year, Venkatachari said, while declining to be more specific.
8KMiles has more than five years of experience as a cloud services integrator for Amazon enterprise cloud accounts. It is based on San Ramon, Calif., while FuGen is in Sunnyvale, Calif. The company plans to keep the FuGen technical team and brand name.