LogRhythm and Exabeam announce merger to power AI-driven cybersecurity solutions

Security intelligence and management solutions startup Exabeam Inc. and security intelligence company LogRhythm Inc. are merging with the goal of leveraging their respective strengths to create a combined company that provides artificial intelligence-driven security operations. Masu.

The merger is touted as allowing customers of both companies to benefit from increased R&D investment and product innovation, expanded services and support, and access to a larger AI-driven product portfolio.

It's also a sign that some incumbent cybersecurity companies are under strain as new technologies and startups continue to emerge and strain corporate security budgets. However, M&A continues in the cybersecurity space, and despite the rise of large platforms such as Palo Alto Networks, CrowdStrike Holdings, and Zscaler, there are still no signs of the entire industry consolidating into a small number of suppliers. rare.

“Our expertise and shared strategic vision will come together to accelerate innovative AI-driven cybersecurity solutions for customers around the world,” Logrhythm CEO Chris O'Malley said in a statement. Probably.'' “With over 20 years of best-in-class SIEM and UEBA experience serving thousands of customers around the world, we are proud to announce a new, employee-driven organization that distills the absolute best that both have to offer. Ready to build.”

Terms of the merger have not been disclosed. It is expected to close in the third quarter, subject to regulatory approvals and customary closing conditions.

Logrhythm has been majority-owned by private equity firm Thoma Bravo since 2018, and Thoma Bravo is likely behind the merger. Exabeam had raised $390 million in venture capital funding, including a $200 million round in June 2021 at a valuation of $2.4 billion.

Investors in Exabeam include Blue Owl Capital Inc., Acrew Capital Partners LLC, Lightspeed Venture LLC, and Norwest Venture Partners.

Founded in 2013, Exabeam provides security intelligence and management solutions. The company's security intelligence platform uses machine learning to provide advanced analytics and automated incident response, while offering set pricing for unlimited data.

Founded in 2003, Logrhythm provides advanced security information and event management solutions to detect, analyze and respond to cybersecurity threats. The company's platform uses machine learning, user and entity behavioral analytics, security orchestration, automation, and response to streamline security operations and enhance threat detection and mitigation.

News of the merger comes after Palo Alto Networks and IBM announced a new partnership, in which Palo Alto Networks will acquire IBM's QRadar Software-as-a-Service assets and create a portfolio across network, cloud, and security operations. The company plans to become IBM's preferred cybersecurity partner for many years to come. Center.

Palo Alto Networks CEO Nikesh Arora said the IBM-Palo Alto partnership was necessary to prepare for competition from Splunk, which was acquired by Cisco Systems for $28 billion in March. did.

Even if the pattern isn't obvious, M&A in recent months, including the LogRhythm-Exabeam merger, the Palo Alto IBM deal, and Cisco's acquisition of Splunk, all point to one. The number of companies will not decrease overall.

Countless security startups have launched over the past 20 years, many bringing innovative new ideas to market, but there are so many that the average customer is spoiled for choice. , struggling to manage everything. Security industry consolidation can help overcome this challenge through the creation of large, one-stop companies that provide a full range of security services. This is also at the heart of the LogRhythm and Exabeam merger, even if most companies have no intention of reducing the number of cybersecurity supplies.

“As an integrated organization, we are pushing the boundaries of security operations innovation with solutions that integrate AI, automation, SIEM, security analytics, and UEBA to create a holistic approach to combating cyber threats,” said Adam Geller, CEO of Exabeam. We will continue to provide it.”

Image: Logrhythm