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Box's First Post-IPO Deal Is for Mobile Security Startup Subspace

Subspace will shut down and its seven-person team will join Box.

Kaspars Grinvalds /Shutterstock

Box reached a deal to buy Subspace, a seven-person startup based in Berkeley, Calif., that helps companies secure mobile devices, especially personal devices that employees bring from home like smart phones and tablets.

Financial terms are not being disclosed, but Subspace had been funded by its founders. It will shut down by April 3 and all seven employees will join Box.

The deal comes just a month and change after the cloud storage and collaboration company’s $175 million IPO on the New York Stock Exchange. It signals that it intends to continue to acquire small companies to enhance its existing services.

Subspace launched in 2013 and built a way to manage a technique for giving a company’s individual employees access to sensitive data on their personal notebooks, phones and tablets even when those files live in cloud applications like Box. That’s similar to one of Box’s key claims: That it helps lock down and restrict access to files when regulatory or legal requirements call for it. It’s a key problem in industries like health care and finance, where compliance rules are tighter.

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