Rapid7 Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)
BOSTON, March 26, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ:RPD), a global leader in AI-powered managed cybersecurity operations, announced that the company granted inducement awards, effective as of March 26, 2026, to employees and contractors of Kenzo Security, Inc. ("Kenzo") in connection with Rapid7's acquisition of Kenzo on March 26, 2026, as a material inducement for the Kenzo employees and contractors to commence employment with Rapid7 and its subsidiaries following Rapid7's acquisition of Kenzo.
Rapid7 granted inducement awards comprised of 467,945 restricted stock units ("RSUs") in respect of Rapid7's common stock, in the aggregate, to Kenzo employees and contractors. In addition to RSUs, each of Harish Singh and Partha Naidu, Kenzo's founders, received an inducement award comprised of 525,769 performance-based restricted stock units ("PSUs") in respect of Rapid7's common stock (assuming maximum performance is achieved).
The RSUs vest 1/3 on each of the first three anniversaries of the vesting commencement date, subject to continued employment through the applicable vesting date. The PSUs will generally be earned over two annual performance periods beginning January 1, 2027, based on Rapid7's attainment of Year over Year Managed MDR & SIEM Annualized Recurring Revenue goals. Earned PSUs for performance period 1 will vest 50% at the end of performance period 1 and 50% at the end of performance period 2, subject to the recipient's continued employment through the payment date. All earned PSUs for performance period 2 will vest at the end of performance period 2, subject to the recipient's continued employment through the payment date.
The RSUs and PSUs were granted under Rapid7's 2015 Equity Incentive Plan, as amended (the "Equity Plan") pursuant to the Equity Plan's inducement award share pool. The RSUs and PSUs were unanimously approved by Rapid7's Compensation Committee, which is independent within the meaning of Nasdaq Listing Rule 5605(a)(2), in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement for the Kenzo employees and contractors to commence employment with Rapid7 following Rapid7's acquisition of Kenzo.
About Rapid7
Rapid7, Inc. (NASDAQ:RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations' cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.
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