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Data management platform RecordPoint has bolstered its capabilities in artificial intelligence security through the acquisition of Redactive, a fast-growing Australian company focused on sensitive data discovery and classification.
While financial details of the transaction have not been disclosed, RecordPoint says the deal will help it better serve its customers in highly regulated industries.
Among the company’s existing clients are banking majors Westpac, NAB and Macquarie, as well as the Australian Prudential Regulation Authority, Australian Securities and Investments Commission and the City of New York.
Redactive is backed by Blackbird, Felicis, Atlassian Ventures and Zapier and has raised $19 million since inception.
RecordPoint notes that within 18 months of founding, the Melbourne-based Redactive has pioneered an enterprise-grade AI tool aimed at managing data, while also securing superfund HESTA and PEXA as its flagship clients.
Founded in 2023 by Lucas Sargent, Andrew Pankevicius and Alexander Valente, Redactive was established to make AI adoption secure, compliant and scalable.
Pankevicius is a former product manager at Atlassian, Valente worked in a similar role at Immutable while Sargent is a machine learning engineer.
“With over eight million pieces of data moving through our platform per day, RecordPoint is now handling more data transactions than the NASDAQ,” says Anthony Woodward, CEO of RecordPoint.
“Redactive’s solution will be instrumental as we look to bolster our capabilities with AI security and governance and continue to scale our operations.
“This is to ensure that, as the volume of data we handle for our clients exponentially grows, our capability grows with it.”
Woodward says the “speed and precision” with which the founders have built the Redactive platform will help drive RecordPoint’s existing growth plans.
“While there’s still room to grow in both the US and Australia, we’re eager to bring RecordPoint’s solution into new markets in Asia and Europe,” he says.
RecordPoint, which was founded in Sydney by Woodward and Elon Aizenstros in 2009 and has expanded globally with key operations in the US, provides organisations with managed data solutions that are critically focused on data safety and security.
Redactive AI co-founder Alex Valente says the deal with RecordPoint represents one of the first acquisitions of an AI-powered enterprise solution in Australia.
“It shows just how quickly AI is speeding up the pace of business,” he says.
"RecordPoint is the ideal partner to scale Redactive's impact globally. Anthony and his team see the value of what we've built, and it's exciting to see the Redactive platform continue to be deployed in production across RecordPoint's financial services customers in Australia and the US."
Valente says the deal with RecordPoint followed moves by Redactive to deploy proof-of-values for its AI platform in the US market.
“We quickly recognised that organisations required full data security platforms to address traditional and emergent AI security risks,” he says.
“We were left with a decision, double down on the new, or expand into the existing data security market.
“Partnering with RecordPoint made total sense so we could service these clients end to end, leveraging our expertise in AI security, whilst customers get RecordPoint’s mature proven data governance capabilities.”
Valente says that as fellow Australian founders in the sector, the Redactive team knew Woodward at RecordPoint for some time and stayed up to date with each other on various market and security trends.
“When we began pursuing a data security platform strategy and sought to partner with leaders in the space, RecordPoint stood out,” he says.
“They had the installed customer base with dream Redactive customers, along with a real ability to distribute our platform locally and internationally. Talks quickly changed from partnership agreements to acquisition.”
Following the sale to RecordPoint, the Redactive founders have revealed that they are close to announcing a new AI venture.
“I can’t say too much right now whilst we are in stealth,” Valente tells Business News Australia.
“What I can say is that as founders, we discovered a problem that was a real inhibitor to scaling software companies that we personally experienced whilst building Redactive, and our peer founders felt the pain significantly too.
“It’s a problem we are both really passionate about and we are well placed to solve given our experience building Redactive.
“In short, we think we’ve cracked it with a killer solution.”
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