LogRhythm, backed by private equity firm Thoma Bravo, has acquired MistNet to boost SIEM (security information and event management) with cloud-based analytics, network visibility and threat detection capabilities. Financial terms of the deal were not disclosed.
This is M&A deal number 31 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. Also, see all MSSP mergers here.
MistNet, founded in 2016, develops a cloud-based platform that's designed to "dramatically improve threat detection and significantly reduce false positives," the company says. MistNet raised $7 million in Series A funding in 2019 led by Foundation Capital with participation from Westwave Capital and a networking and security company.
Private equity firm Thoma Bravo acquired majority control of LogRhythm in 2018. LogRhythm launched a cloud version of its SIEM platform in May 2019, and then disclosed a surprise CEO change from Andy Grolnick to Mark Logan in July 2019.
LogRhythm Acquires MistNet: Deal Details
Fast forward to present day. The MistNet acquisition, according to LogRhythm, will allow the buyer to "deliver intelligent, machine-learning based detection and response capabilities that incorporate network detection, user and entity behavior analytics (UEBA), endpoint detection and response data (EDR), and additional MITRE ATT&CK detections to solve current and emerging security and risk problems."
In a prepared statement about the deal, LogRhythm President and CEO Mark Logan said:
“I am thrilled to announce the acquisition of MistNet. Their solution will facilitate our goal of addressing current and emerging endpoint security needs for our global customers and partners. MistNet complements our existing SIEM platform by enhancing deep network visibility, behavior analytics and threat detection capabilities and will accelerate LogRhythm’s reach into the XDR market.”
Added Geoffrey Mattson, president and CEO of MistNet:
“We are excited to join a company as committed to innovation and customer success as LogRhythm. The acquisition creates significant product synergy at the convergence of XDR and SIEM that will positively impact the industry, including the potential for accelerating detection based on open frameworks such as MITRE ATT&CK and driving additional use cases for supply chains, public cloud and IoT/OT security.”
Cloud SIEM Services: Competition Intensifies
Although the SIEM market is growing, competition in the sector continues to intensify. For instance, cloud SIEM provider Sumo Logic launched a successful IPO in September 2020, and Sumo Logic has been gaining momentum with global systems integrators and MSSPs, CEO Ramin Sayar indicated in December 2020.