LevelBlue, a large managed security service provider, has announced its plan to acquire cybersecurity company Cybereason. This acquisition will integrate Cybereason’s extended detection and response (XDR) technology and digital forensics and incident response (DFIR) capabilities into LevelBlue’s existing suite of managed security services. Current Cybereason investors, including SoftBank Corp., SoftBank Vision Fund 2, and Liberty Strategic Capital, will transition to become investors in LevelBlue as part of the deal. Financial specifics of the acquisition were not made public.
Cybereason had previously raised around $850 million with a goal of a public offering at a valuation of nearly $5 billion. However, the company faced difficulties in a highly competitive endpoint security market, leading to layoffs in 2022. Despite a strong product, Cybereason struggled to gain significant market share in the United States, particularly against major competitors like CrowdStrike and SentinelOne, even after a 2021 partnership with Google.
Manish Narula, CEO of Cybereason, expressed his optimism about the acquisition. “Joining LevelBlue marks an exciting new chapter for Cybereason,” he stated. “This acquisition strengthens our collective capabilities across XDR, MDR, offensive security, DFIR, and cybersecurity consulting services, enabling us to unlock additional value for our clients and their counsel and cyber insurance partners globally.” The synergy between the two companies is expected to create a more robust and comprehensive security offering.
LevelBlue was established last year as a spin-off from AT&T Cybersecurity, resulting from a collaboration between AT&T and the private equity firm WillJam Ventures. This strategic move allowed LevelBlue to operate more independently and focus on its core mission of providing advanced managed security solutions to a global clientele. The company’s formation laid the groundwork for its subsequent growth through targeted acquisitions.
This deal with Cybereason is LevelBlue’s third acquisition this year, highlighting its aggressive growth strategy. The company had previously acquired Trustwave, another managed security provider, and Aon’s Cybersecurity & IP Litigation Consulting groups, which include Stroz Friedberg and Elysium Digital. These strategic acquisitions demonstrate LevelBlue’s commitment to expanding its market presence and enhancing its service portfolio to meet the evolving needs of the cybersecurity landscape.
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