Personal fairness big Thoma Bravo has introduced that its security info and occasion administration (SIEM) firm LogRhythm will likely be merging with Exabeam, a rival cybersecurity firm backed by the likes of Cisco and Lightspeed Enterprise Companions.
SIEM is the enterprise of utilizing real-time knowledge gleaned from servers, community units, and purposes to flag irregular exercise and thwart potential security threats earlier than they escalate. Consolidation within the house is rife. The LogRhythm and Exabeam merger information arrived on the identical day as Palo Alto Networks confirmed it was buying the belongings of IBM’s SIEM enterprise, QRadar, which IBM itself had acquired in 2011. It additionally follows Cisco’s $28 billion megadeal to acquire SIEM big Splunk, a deal that closed in March.
Extra broadly, the cybersecurity house is awash with M&A exercise: earlier this month, Akamai revealed it was buying API security firm Noname for $450 million; Permira purchased a majority stake in digital fraud detection startup BioCatch at a $1.3 billion valuation; and Thoma Bravo reared its head once more to take cybersecurity firm Darktrace personal in a $5 billion deal.
Elsewhere, cloud security platform Wiz hit a whopping $12 billion valuation on a $1 billion fundraise, an funding it says will likely be used substantively to scoop up different cybersecurity startups.
LogRhythm, for its half, had raised round $126 million earlier than Thoma Bravo swooped in and purchased a majority stake again in 2018 for an undisclosed determine. Exabeam, in the meantime, took its complete funding to just about $400 million at its $200 million Collection F spherical in 2021. Thoma Bravo hasn’t divulged Exabeam’s valuation at this merger. Exabeam was beforehand valued at $2.4 billion. Many corporations’ valuations have plummeted within the nice post-pandemic correction, nevertheless; and Exabeam has hit just a few bumps. This Reddit publish particulars layoffs six months in the past, for instance.
As with nearly each sector as of late, AI is taking part in an more and more pivotal half within the cybersecurity house, and it’s “AI-driven security options” that LogRhythm CEO Chris O’Malley says is what Exabeam brings to the desk.
“Collectively, our experience and shared strategic imaginative and prescient will speed up revolutionary AI-driven cybersecurity options for purchasers world wide,” O’Malley stated in a press release. “Vigilant CISOs have eagerly awaited the emergence of a robust, customer-obsessed, singularly-focused international chief in AI-driven security operations — one that provides a best-of-breed different to the frustratingly advanced choices available on the market at present. That day has arrived.”
Thoma Bravo stated it expects the merger to shut in Q3 2024.
