Barracuda Acquires Skout Cybersecurity - Expanding into XDR

Barracuda Networks Acquires Skout Cybersecurity

Barracuda Networks has completed the acquisition of Skout Cybersecurity, a New York-based provider specializing in extended detection and response (XDR) services, exclusively through channel partners.

Expanding into the XDR Market

The financial details of this transaction have not been publicly revealed. This acquisition strategically positions the California-based cybersecurity vendor within the rapidly expanding XDR market.

The increasing complexity of modern IT environments, driven by cloud adoption and hybrid work models, is fueling demand for XDR solutions.

Growing Demand for XDR Solutions

Recent research indicates that a significant 80% of security professionals now prioritize XDR solutions. These solutions automatically gather and analyze data from various security layers to enhance threat detection capabilities.

Furthermore, 68% of enterprises had plans to implement XDR between 2021 and 2022, demonstrating a clear industry trend.

Enhanced Security Monitoring for MSPs

By integrating Skout’s XDR platform and its associated security expertise, Barracuda aims to deliver real-time, continuous security monitoring to managed service providers (MSPs).

This will empower MSPs to address security threats with greater efficiency and effectiveness.

Skout’s Capabilities

Skout, a cyber-as-a-service startup, had previously secured $25 million in funding from investors including RSE Ventures and ClearSky.

Through its XDR platform, Skout offers a suite of security services, including AI-powered endpoint protection, email security, and monitoring for Office 365 environments.

Strategic Acquisitions by Barracuda

This acquisition builds upon Barracuda’s recent strategic mergers and acquisitions activity, including the purchase of Fyde, a provider of zero trust access solutions.

MSPs and the Need for Security

“Protecting customers’ end-users, devices, and data is paramount for MSPs, especially given the increasing sophistication of cyber threats,” stated Brian Babineau, SVP and general manager at Barracuda MSP.

“To effectively safeguard their clients and their own operations, MSPs are evolving into security-focused businesses.”

“The integration of Skout allows Barracuda’s MSP partners to deploy comprehensive security solutions, consolidating data feeds into a unified, 24/7 operation for rapid analysis and response.”

Closing Details

The acquisition is anticipated to be finalized later this month, contingent upon receiving necessary regulatory approvals and fulfilling standard closing requirements.

Barracuda’s Background

Barracuda Networks was formerly a public company but was acquired by private equity firm Thoma Bravo in November 2017 for $1.6 billion.

The company provides security solutions for cloud-connected networks and applications and serves over 200,000 customers, including prominent organizations like Delta Airlines, Hootsuite, and Samsung.