Thoma Bravo, a major player in private equity, has announced the merger of its security information and event management (SIEM) company, LogRhythm, with Exabeam, a formidable cybersecurity firm backed by industry heavyweights like Cisco and Lightspeed Venture Partners.
SIEM involves the utilization of real-time data from servers, network devices, and applications to identify abnormal activity and mitigate potential security threats before they escalate. The announcement of the LogRhythm and Exabeam merger coincided with Palo Alto Networks’ confirmation of its acquisition of IBM’s SIEM business, QRadar, and followed Cisco’s monumental $28 billion deal to acquire SIEM giant Splunk, which concluded in March.
The cybersecurity sector is witnessing a flurry of merger and acquisition (M&A) activity. Akamai recently disclosed its acquisition of API security company Noname for $450 million, while Permira acquired a majority stake in digital fraud detection startup BioCatch at a valuation of $1.3 billion. Additionally, Thoma Bravo reentered the spotlight by privatizing cybersecurity company Darktrace in a $5 billion deal.
Meanwhile, cloud security platform Wiz reached a staggering $12 billion valuation following a $1 billion fundraising round, earmarked for acquiring other cybersecurity startups.
Prior to Thoma Bravo’s majority stake acquisition in 2018, LogRhythm had raised approximately $126 million. Exabeam, on the other hand, amassed nearly $400 million in funding, with its Series F round reaching $200 million in 2021. Thoma Bravo has not disclosed Exabeam’s valuation in this merger. Exabeam was previously valued at $2.4 billion, although like many companies, it has faced challenges amid the post-pandemic correction, including reported layoffs seven months ago.
Artificial intelligence (AI) is assuming an increasingly crucial role in the cybersecurity space, with LogRhythm CEO Chris O’Malley emphasizing Exabeam’s expertise in this area. O’Malley believes that together, their shared strategic vision will accelerate the development of innovative AI-driven cybersecurity solutions globally. He asserts that the merger will provide vigilant Chief Information Security Officers (CISOs) with a customer-centric, AI-driven security operations leader, offering a superior alternative to the complex options currently available in the market.
Source: techcrunch.com
