Global investment firm Francisco Partners has purchased Sumo Logic, a cloud security information and event management (SIEM) and security orchestration, automation and response (SOAR) company, for approximately $1.7 billion.
This is technology M&A deal number 153 that MSSP Alert and sister site ChannelE2E have covered so far in 2023.
Francisco Partners, founded in 1999, is based in San Francisco, California. The company has 207 employees listed on LinkedIn. Francisco Partners' areas of expertise include security, technology and communications.
Sumo Logic, founded in 2010, is based in Redwood City, California. The company has 1,086 employees listed on LinkedIn. Sumo Logic's areas of expertise include security analytics, big data and log management.
What the Acquisition Means for Sumo Logic
Sumo Logic will focus on finding ways to "expand its market opportunity, innovate on its critical solutions, accelerate growth and further its vision," according to a prepared statement. Also, Sumo Logic will operate as a private company backed by Francisco Partners.
In addition, Sumo Logic is positioned to "capitalize on the large and growing demand from enterprises for observability and security solutions," said Brian Decker and Evan Daar, partners at Francisco Partners.
To support Sumo Logic, Francisco Partners plans to invest in the company and help the business explore ways to "make the world's digital experiences reliable and secure," Francisco Partners Principal Karl Shum noted.
Sumo Logic Builds Momentum with Channel Partners
The Francisco Partners acquisition comes as Sumo Logic has shifted its focus from "channel-fulfilled" to "channel-sourced" sales opportunities, CEO Ramin Sayar said in December 2022.
Sayar indicated that more than two-thirds of Sumo Logic's new business went through the channel in the third quarter of fiscal year 2023. He also pointed out that Sumo Logic expects MSPs to "play an increasing role going forward" as the business continues to look for ways to expand.