Barracuda Networks is acquiring Skout Cybersecurity, a Top 250 MSSP that develops XDR (eXtended Detection and Response) and Security Operations Center (SOC) solutions for MSPs. Financial terms of the deal were not disclosed.
Skout through January 2021 or so positioned itself mainly as cyber-as-a-service for MSPs. The company also competes in the highly fragmented SOC as a Service (SOCaaS) market for MSPs. More recently, Skout -- like much of the cybersecurity industry -- has jumped on the hot XDR term to emphasize a platform that connects "with email, firewall, identity and access, and a 24x7 SOC that aids the detection and response of cyberattacks."
Barracuda, backed by private equity firm Thoma Bravo, expects to close the Skout Cybersecurity acquisition in July 2021.
Skout Business Focus, Earlier Investors
In a prepared statement about the Skout deal, Brian Babineau, senior VP and GM, Barracuda MSP, said:
“MSPs must be able to protect their customers’ end users, their devices, and the data they are accessing with these devices against increasingly sophisticated threats. To achieve this level of protection of their customers, and themselves, MSPs are transforming their businesses into "security centric" operations. The addition of SKOUT enables Barracuda’s MSP partners to deploy security solutions across their environments, connecting their data feeds into a unified, 24x7 operation for swift analysis and response."
Skout had multiple investors ahead of the sale. Indeed, the company raised $25 million in a Series B funding led by ClearSky in 2019. Earlier, RSE Ventures, a sports, technology and entertainment venture firm co-founded by Miami Dolphins owner Stephen Ross and Vice Chair Matt Higgins, acquired Skout for $30 million in 2018. Skout was previously known as Oxford Solutions ahead of the RSE deal.
Barracuda MSP Software and Acquisitions: M&A List
The overall Barracuda MSP suite for MSPs now spans various RMM (remote monitoring and management), backup and disaster recovery (BDR), cybersecurity, and SOC capabilities. Key acquisitions tracked by MSSP Alert and ChannelE2E have included:
- November 2020: Fyde for zero trust network access.
- August 2019: InfiSecure Technologies for bot detection & mitigation capabilities.
- February 2019: Managed Workplace for RMM software tools.
- January 2018: PhishLine for cybersecurity education software.
- March 2016: Sookasa for SaaS application security.
- September 2015: Intronis for cloud-based BDR.
M&A: MSSP, MDR, XDR and SOC Service Providers
Meanwhile, M&A activity involving MSSPs, MDR service providers and SOC (security operations center) service providers remains strong.