The rise of AI coding tools means developers can create software applications faster than ever before, but the risk of hackers and exploits has grown alongside them. ThreatModeler, a cybersecurity company that helps developers identify vulnerabilities in applications, announced Thursday that it will acquire its biggest competitor, IriusRisk. The deal is worth more than $100 million, people familiar with the matter said, adding that the combined company would have annual recurring revenue of about $50 million.
during an interview wealthMatt Jones, CEO of ThreatModeler, said that when many people have to rely on large platforms such as Microsoft Or turning to artificial intelligence for threat modeling, which Jones believes is not enough and could lead to significant risks. Jones said the acquisition will allow ThreatModeler to keep pace with the company’s expansion of coding capabilities in unprecedented ways. “In order for us to be able to bring the two leaders together, we can be more proactive on (our) road map,” he said.
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Founded in 2010, New Jersey-based ThreatModeler provides automated software that helps coders check for security flaws in applications before they are launched. For many organizations, the alternative is to rely on experts called security architects who review the code base after it goes live, which can be a tedious and often belated process.
Originally founded by founder Archie Agarwal, ThreatModeler received its first institutional funding in 2024 from growth equity firm Invictus, which purchased a majority stake in the company. Invictus will now also become a major investor in the combined business.
Before completing the acquisition at the end of 2025, ThreatModeler’s biggest competitor was Spain-based IriusRisk. ThreatModeler even filed a patent infringement lawsuit against IriusRisk in early 2025.
In addition to settling the lawsuit, Jones said the deal makes sense for customers by combining the two platforms, which he described as “80 percent” similar. “What we have to do is take the best of both worlds and bring them together,” he said. The combined company will have about 300 customers, which Jones said are mostly Fortune 1000 companies such as banks and large technology companies, but he declined to name them for security reasons.
While ThreatModeler was founded long before the launch of ChatGPT in November 2022 sparked the current AI revolution, Jones said his company has integrated AI into its workflows, including plans to launch an agent product later next year that can adapt an organization’s threat model as its applications evolve.
The flip side of AI is that as organizations increase their coding capabilities, their need for software like ThreatModeler increases. “The more code you write, the more code you need to evaluate,” Jones said.
Different jurisdictions, including the United States, Canada and the European Union, are also mandating companies such as financial institutions and hardware manufacturers to maintain their own cyber threat models.
As potential vulnerabilities increase, ThreatModeler’s new main competitors may be companies turning to artificial intelligence to develop their own threat modeling methods. But Jones said part of his company’s role is to spread the word about the need for strong cybersecurity practices. “If you do that to yourself, you’re kidding yourself,” he said. “You might think you’re doing threat modeling, but you might actually be putting yourself at more risk.”
This story was originally published on wealth network