Thoma Bravo's LogRhythm Merges with Exabeam to Further Consolidate Cybersecurity | TechCrunch - Latest Global News

Thoma Bravo’s LogRhythm Merges with Exabeam to Further Consolidate Cybersecurity | TechCrunch

Private equity giant Thoma Bravo has announced that its security information and event management (SIEM) company LogRhythm will merge with Exabeam, a rival cybersecurity company backed by the likes of Cisco and Lightspeed Venture Partners.

SIEM is about leveraging real-time data from servers, network devices, and applications to detect unusual activity and prevent potential security threats before they escalate. Consolidation in space is widespread. News of the LogRhythm-Exabeam merger arrived on the same day that Palo Alto Networks confirmed that it was acquiring the assets of IBM’s SIEM business QRadar, which IBM itself acquired in 2011. It also follows Cisco’s $28 billion megadeal to acquire SIEM giant Splunk, a deal that closed in March.

In general, the cybersecurity space is abuzz with M&A activity: earlier this month, Akamai announced it was acquiring API security company Noname for $450 million; Permira bought a majority stake in digital fraud detection startup BioCatch in a deal valued at $1.3 billion; and Thoma Bravo reared his head again, taking cybersecurity company Darktrace private in a $5 billion deal.

Elsewhere, cloud security platform Wiz reached a whopping $12 billion valuation in a $1 billion fundraising, an investment it says will be used largely to underwrite other cybersecurity startups win.

LogRhythm, for its part, had raised around $126 million before Thoma Bravo stepped in and acquired majority ownership in 2018 for an undisclosed amount. Meanwhile, Exabeam increased its total funding to nearly $400 million in its $200 million Series F round in 2021. Thoma Bravo did not disclose Exabeam’s valuation in this merger. Exabeam was previously valued at $2.4 billion. However, many companies’ valuations have plummeted in the major post-pandemic correction; and Exabeam has had a few problems. For example, this Reddit post describes layoffs six months ago.

As with nearly every sector today, AI is playing an increasingly important role in cybersecurity, and Exabeam is bringing “AI-driven security solutions” to market, according to LogRhythm CEO Chris O’Malley.

“Together, our expertise and shared strategic vision will accelerate innovative AI-driven cybersecurity solutions for customers around the world,” O’Malley said in a statement. “Astute CISOs have been eagerly awaiting the emergence of a strong, customer-centric and uniquely focused global leader in AI-driven security operations – one that offers a best-in-class alternative to the frustratingly complex options in today’s market.” That day has come.”

Thoma Bravo said it expects the merger to close in the third quarter of 2024.

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