N-able Inc., a leading provider of software for managed service providers (MSPs), has announced its acquisition of cybersecurity firm Adlumin Inc. in a deal valued at $266 million. This strategic move aims to enhance N-able's cybersecurity offerings and better serve its clients in an increasingly complex digital landscape.
Key Takeaways
N-able acquires Adlumin for $266 million, comprising $220 million in cash and 15.7 million shares.
The deal includes potential performance-based earnouts of up to $30 million by 2026.
Adlumin specializes in extended detection and response (XDR) solutions, utilizing AI to enhance cybersecurity.
N-able aims to integrate Adlumin’s technology into its existing product suite to drive revenue growth.
Details of the Acquisition
N-able is financing the acquisition with a combination of cash and stock, with $220 million in cash and 15.7 million shares valued at approximately $16 million. Additionally, Adlumin's investors could receive up to $30 million more by the end of 2026, contingent on meeting specific performance milestones.
This acquisition marks a significant step for N-able, which was spun off from SolarWinds Corp. in 2021. The company provides software solutions that help MSPs manage IT infrastructure, including monitoring devices, data backup, and patch management.
Adlumin's Cybersecurity Solutions
Adlumin, based in Washington, D.C., is known for its advanced XDR platform that leverages artificial intelligence to analyze user activity patterns within a network. The platform identifies anomalies that may indicate malicious activity, enhancing the security posture of organizations.
Key features of Adlumin's offerings include:
Vulnerability Detection: Identifies systems with security flaws and ranks them based on breach likelihood.
Regulatory Compliance: Automatically checks compliance with cybersecurity and privacy regulations, such as HIPAA.
Managed Detection and Response (MDR): Provides services to help organizations respond to and remediate cybersecurity incidents.
Dark Web Monitoring: Alerts organizations if their internal data appears on dark web forums.
Adlumin's solutions are currently utilized by over 3,500 customers, and the company has raised $83 million in funding, including a $70 million Series B round last year.
Strategic Implications for N-able
N-able's CEO, John Pagliuca, emphasized that the acquisition aligns with customer demands for cloud-native XDR and MDR solutions, which are critical for securing their clients effectively. The partnership has already contributed to significant annual recurring revenue (ARR) growth, and N-able anticipates further acceleration post-acquisition.
In light of the acquisition, N-able has updated its financial guidance, projecting a slight decrease in adjusted EBITDA but an increase in revenue growth expectations by 3%, now forecasting between $111.5 million and $113 million.
The acquisition of Adlumin positions N-able to strengthen its cybersecurity capabilities and expand its service offerings to MSPs. As cyber threats continue to evolve, this strategic move underscores N-able's commitment to providing comprehensive security solutions to its clients, ensuring they are well-equipped to navigate the complexities of the digital landscape.
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Sources
N-able acquires cybersecurity provider Adlumin in $266M deal - SiliconANGLE, SiliconANGLE.