Defense contractor Vanterra Systems has acquired Redline Analytics, a cybersecurity threat intelligence startup, for approximately $85 million in cash and stock, according to a joint announcement from both companies.

Redline, founded in 2020 by former NSA analysts, specializes in automated threat hunting and attribution tools used by both government and commercial clients. The company raised $22 million in venture funding and had reached approximately $15 million in annual recurring revenue at the time of acquisition.

For Vanterra, the deal bolsters a cybersecurity portfolio that has been a stated strategic priority since the company's 2023 strategic review. Vanterra CEO James Aldrich called the acquisition "a natural fit" that adds "world-class threat intelligence capabilities to our existing platform."

"A natural fit that adds world-class threat intelligence capabilities to our existing platform."

James Aldrich, CEO, Vanterra Systems

For Redline's 40-person team, the acquisition provides access to Vanterra's sales infrastructure and government relationships — critical assets for a startup trying to break into the lucrative but relationship-heavy federal market.

The deal is expected to close in Q1 2026 pending regulatory review.