CrowdStrike splashes $96m on US security startup

CrowdStrike is set to snap up US-based startup Preempt Security for a cool $96m.

The purchase would be just the second M&A deal in the endpoint vendor's ten-year history, the first being Payload Security in November 2017.

Preempt is an authentication and access control vendor which claims to have invented the market's first solution to deliver conditional access for continuously detecting and preempting threats based on identity, behaviour and risk.

CrowdStrike CEO and co-founder, George Kurtz, said Preempt's access control and threat prevention software will bolster customer defences without compromising user experience.

"With the addition of Preempt Security's capabilities, the CrowdStrike Falcon platform will provide enhanced protection against identity-based attacks and insider threats," he said.

"Combining Preempt's technology with the CrowdStrike Falcon platform will help customers achieve end-to-end visibility and enforcement."

CrowdStrike's investment in its portfolio follows its European channel boss' claim four months ago that the US cybersecurity giant has seen a spike in interest from MSPs and MSSPs looking to bolster their own endpoint security capabilities during the COVID-19 pandemic.

In a blog post, Kurtz added that the Preempt acquisition will give partners a stronger solution to go to customers with.

"By integrating our technology with best-of-breed solutions, including with CrowdStrike Store partners, combined with our planned acquisition of Preempt, CrowdStrike is leading the charge in delivering an end-to-end Zero Trust solution for customers," he said.

The cybersecurity vendor said it plans to split the payment into approximately $86m in cash, and $10m in stock and options, with the deal expected to close by 31 October.

Founded in 2014, Preempt has a headcount of 71 and has raised $27.5m in three rounds of outside funding.

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• Topics
• Finance and M&A
• cybersecurity
• Crowdstrike
• M&A
• Preempt Security
• US
• MSP
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