This is M&A deal number 121 that MSSP Alert and sister site ChannelE2E have covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Sqreen raised $14 million in Series A funding in 2019. Early investors included Greylock Partners, Y Combinator, Alven and Point Nine. Sqreen's software platform provides Runtime Application Self-Protection (RASP) and in-app web application firewall (WAF) that is "already utilized by hundreds of development, operations and security teams in production to detect and block code level exploits while allowing legitimate traffic."
Looking ahead, Sqreen's technology will allow Datadog customers to leverage a "unified platform to deliver and manage secure and resilient applications," the buyer asserts.
Datadog Acquires Sqreen: Executive Perspectives
In a prepared statement about the deal, Datadog CEO Olivier Pomel said:
"The application layer is currently one of the most vulnerable and exploitable attack surfaces. In combining Sqreen with Datadog, we plan to close the gap between application developers and security teams and provide our customers robust application security, without the disjointed visibility, high implementation costs and steep learning curve of traditional application security products."
Added Pierre Betouin, CEO of Sqreen:
"Today's announcement marks an exciting new chapter for Sqreen that will enable us to deliver on our mission of creating a more secure future for all organizations. As part of Datadog, we will be able to accelerate the way we build security tools that automate application protection, threat detection, and security monitoring to deliver more value to customers."
The deal is expected to close in Q2 2021.
Datadog's Security Strategy Accelerates: Datadog's established software is popular for cloud application performance management and monitoring (APM). Acquiring Sqreen is the latest step in Datadog's aggressive expansion into the security marketplace. Noteworthy moves include:
- Announcing Incident Management, which allows Datadog customers to declare incidents, investigate root cause and dependencies, collaborate around a shared view of the incident, follow to resolution, and auto-generate post-mortem documentations, all within the Datadog platform, the company says.
- Beta Testing Runtime Security and Threat Intelligence. Runtime Security extends the data sources used for threat detection from logs to infrastructure and workload data, Datadog says. Threat Intelligence leverages threat intelligence feeds curated by specialized threat intelligence partners, the company says.
Datadog Partner Program, Revenue Growth
Sqreen's website did not promote a partner program for MSSPs (managed security services providers). But Datadog has been extending beyond corporate IT department and DevOps users to more formally engage MSPs and service providers.
Moreover, Datadog now has strategic relationships with Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform. The new Azure and Google relationships should result in products and services this year, Datadog CEO Olivier Pomel said during the company's February 11 earnings call with Wall Street analysts.
Meanwhile, some partnerships are paying big dividends. For instance, the company recently won a seven-figure, partner-led deal in Asia, Pomel says. Another pending deal involves a large management consulting firm. In that case, a partner developed integration with Microsoft Office 365, Pomel said.
Demand for Datadog's software is surging. Revenues were $178 million in Q4 2020, up 56 percent from Q4 2019, the company disclosed on February 11, 2021.