Channel investors, Content, SOC, XDR

Barracuda Acquires Skout for XDR Security, MSP-Focused SOC

Credit: Barracuda Networks

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:

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.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.