LogRhythm and Exabeam have entered into a merger agreement to drive AI-focused security operations, with the combined company tipped to push hard at the midmarket.
The vendors said the freshly combined company will draw from each other’s complementary strengths and technologies to enhance customers’ threat detection, investigation, and response (TDIR) capabilities.
Financial terms of the move have not been disclosed, but the merger is expected to close during Q3 2024, subject to regulatory approvals and customary closing conditions.
In an announcement, Chris O’Malley, CEO of LogRhythm, said the pair’s combined expertise will “accelerate innovative AI-driven cyber security solutions” for customers and provide an alternative to current complex market offerings.
"With more than twenty years of best-in-class SIEM and UEBA experience in serving thousands of worldwide customers, we are poised to create a new employee-inspired organization that encapsulates the absolute best of what we both offer,” he said.
Founded in 2003, LogRhythm leverages machine learning to equip customers with security information and event management (SIEM) and user entity and behavior analytics (UEBA) capabilities to tackle cyber threats. The firm has been owned by private equity firm Thoma Bravo since 2018.
Exabeam, founded in 2012, provides AI-driven security operations through its Security Operations Platform, incorporating cloud-scale security management and SIEM, behavioral analytics, alongside automated TDIR capabilities.
The companies said customers can expect to benefit from enhanced R&D investments and product innovation, improved service and support coverage, as well as access to a larger AI-focused portfolio that covers both cloud-native and on-premises options.
"As a combined organization, we will continue to push the envelope of security operations innovation with solutions that bring AI, automation, SIEM, security analytics, and UEBA together to deliver a holistic approach to combating cyber threats,” commented Adam Geller, CEO of Exabeam.
Why the merger makes sense
Commenting on the merger, Forrester principal analyst Allie Mellen described the move as a “classic case of opposites attract” that throws up the potential for the companies to benefit from each other’s contrasting strengths.
“The combined organization is likely to push hard in the midmarket, where LogRhythm's existing suite has had success and the Exabeam user experience makes it a more natural fit,” she said. “The merger could be great for LogRhythm and Exabeam.
“Both companies needed a missing piece the other could provide. LogRhythm also has a greater market presence in EMEA, while Exabeam has a greater market presence in North America, which is an opportunity for customer expansion.”
Despite this potential for success in the market, Mellen warned that the merger will naturally throw up challenges for both companies to overcome as the market continues to evolve at pace.
“They have dramatically different company cultures and processes, as LogRhythm is a veteran security company founded in 2003 with a focus on a suite-style offering, while Exabeam is, by comparison, a younger company founded in 2012 with a focus on modular, standalone products,” she explained.
“Both of these companies have also faced challenges in recent years that will not be solved by a merger: difficulty keeping pace with market innovation and with the transition to the cloud.”
