Micro Focus ArcSight Acquires Atar Labs SOAR Cybersecurity Software
Micro Focus has acquired Atar Labs, a security orchestration, automation, and response (SOAR) technology software provider, the buyer quietly disclosed in a blog. Financial terms were not disclosed.
This is M&A deal 283 that MSSP Alert and sister site ChannelE2E have covered so far in 2020. See the complete M&A deal list here.
M&A activity in the SOAR software market has been strong. Recent buyers include Fortinet, Palo Alto Networks, Swimlane and Sophos.
Micro Focus Acquires AtarLabs: SOAR for ArcSight
Atar Labs is a “long time SOAR partner with deep integrations into Micro Focus’ ArcSight SIEM platform used by thousands of organizations for threat detection,” Joe Leung, director of product marketing at Micro Focus, disclosed in a blog.
Atar Labs had a partner program focused on technology partners, VARs and resellers but did not specifically mention MSSPs (managed security services providers) on its partner page.
The deal complements the 2019 purchase of Interset, which tucked threat and nation-state attack analytics into the ArcSight.
ATAR Labs essentially spun off from Innovera, a Turkish cybersecurity consulting firm, in 2017, TechEU notes. The software startup was backed a €2.5 million seed investment led by Diffusion Capital Partners.
Micro Focus plans to tuck Atar Labs’ SOAR technology into the layered analytics of ArcSight so that organizations can “detect threats with greater speed and confidence, reduce the risk of time consuming false alarms, focus resources sharply on the highest value activities, and improve the overall efficiency and effectiveness of their reaction and responses.”
Still, Micro Focus will also ensure that ArcSight continues to work with third-party SOAR and ITSM (IT service management) solutions, the buyer indicated.
SOAR Mergers and Acquisitions
M&A activity involving SOAR platforms has been steady to strong. Example deals include:
- April 2020: Swimlane acquired Syncurity. The deal converges SOAR, incident response, case management & managed security services.
- December 2019: Fortinet acquired CyberSponse, a SOAR platform.
- February 2019: Palo Alto Networks is acquiring Demisto, a startup SOAR software provider for MSSPs.
- January 2019: Sophos acquired cybersecurity startup DarkBytes for managed detection & response (MDR), SOAR & MSSP services.
Micro Focus Business Challenges
Meanwhile, Micro Focus has been striving to navigate multiple business challenges — including previous software acquisitions that have failed to fully deliver on their revenue targets.
Micro Focus stock dropped nearly 20 percent in a single day on July 7, 2020 when the company disclosed an impairment charge due to the coronavirus pandemic. Also, the company in March 2020 halted its dividend to conserve cash.