N-able, a Boston-based managed service provider (MSP) platform provider, recently made a significant acquisition in the cybersecurity sector by purchasing Adlumin, a security operations vendor headquartered in Washington D.C. The acquisition, valued at up to $266 million, aims to integrate cloud-native Extended Detection and Response (XDR) and Managed Detection and Response (MDR) solutions into N-able’s IT management platform.
The decision to acquire Adlumin was driven by N-able’s commitment to providing its customers with advanced threat detection, threat intelligence, ransomware prevention, and compliance automation capabilities. With Adlumin boasting $22 million in annual recurring revenue and experiencing rapid growth of 60% annually, the synergy between the two companies is expected to result in cross-selling opportunities and enhanced value for customers. N-able CEO John Pagliuca emphasized the importance of cloud-native XDR and MDR solutions in meeting the evolving cybersecurity needs of customers, which ultimately led to the decision to acquire Adlumin.
Founded in 2016 by Robert Johnston, a former Marine Corps officer with a background in cybersecurity, Adlumin has quickly established itself as a key player in the security operations space. The company employs 149 people and has raised over $100 million in funding, including a significant Series B funding extension in October 2023. Johnston’s expertise in cybersecurity, including leading the investigation into the Russian Foreign Intelligence Services’ breach of the Democratic National Committee, further enhances Adlumin’s credibility in the industry.
The acquisition deal between N-able and Adlumin involves a combination of cash payments, stock shares, and potential performance-based payments, totaling between $236 million and $266 million. This strategic investment is expected to not only strengthen N-able’s cybersecurity offerings but also accelerate its business growth and market expansion. The integration of Adlumin’s advanced security solutions with N-able’s IT management platform is set to deliver unparalleled value to customers by empowering them to proactively manage their IT infrastructure and enhance their security posture.
By combining Adlumin’s cloud-native XDR and MDR capabilities with N-able’s open architecture, the integration is poised to streamline operations for MSPs and IT teams. The seamless data integration across endpoints, SaaS applications, and networks will enable comprehensive risk mapping and focused remediation efforts, ultimately reducing false positives and improving threat mitigation. The acquisition is expected to address the talent shortages in the cybersecurity sector by providing around-the-clock monitoring and automated remediation services.
Moreover, the acquisition of Adlumin marks N-able’s strategic move to enter the lucrative $163 million cybersecurity services market, leveraging Adlumin’s extensive client base and reseller relationships. The deal is projected to be immediately accretive to annual recurring revenue growth, with long-term contributions to cash flow anticipated by late 2025. N-able’s acquisition of Adlumin represents a significant step forward in its mission to deliver comprehensive and innovative cybersecurity solutions to its customers.
This acquisition is a testament to N-able’s commitment to staying at the forefront of the cybersecurity landscape and providing its customers with cutting-edge solutions to protect their IT infrastructure. As the cyber threat landscape continues to evolve, partnerships and acquisitions like this will be crucial for organizations to strengthen their security defenses and mitigate potential risks effectively.