SentinelOne to Acquire Scalyr for $155M - Cybersecurity News

SentinelOne Acquires Scalyr for $155 Million

SentinelOne, a security startup focused on leveraging AI and machine learning for security data analysis, has announced the acquisition of Scalyr, a high-speed logging startup. The transaction is valued at $155 million, comprising both stock and cash.

Enhancing Security Posture with Real-Time Data

SentinelOne’s core function involves analyzing large volumes of data to provide customers with insights into their security status. Integrating a tool that facilitates rapid data iteration and root cause analysis will be exceptionally beneficial, according to CEO and co-founder Tomer Weingarten.

Weingarten stated that Scalyr aligns perfectly with their vision for securing data at scale for all enterprise customers. The company actively sought a solution capable of meeting its specific scaling requirements.

Scalyr's Real-Time Data Lake

Upon discovering Scalyr, SentinelOne quickly recognized its potential, particularly its real-time data lake capabilities. The search for superior data analytics technology led them to believe they had found something truly special.

This platform is capable of ingesting data and making it readily accessible in real time. This accessibility is considered a critical component of their strategy.

Proactive Breach Prevention

The real-time aspect of Scalyr’s technology is viewed as a significant advantage. It allows customers to proactively prevent security breaches, rather than simply responding to incidents after they occur.

By processing data and identifying anomalies in real time, the system can effectively deflect attacks, rather than merely detecting and reacting to them. This represents a shift towards a more preventative security model.

Integration and Standalone Operation

SentinelOne intends to integrate Scalyr into its existing platform. However, Scalyr will also continue to operate as a standalone product.

This approach ensures that current Scalyr customers can maintain their existing workflows while benefiting from the increased resources and R&D investment provided by SentinelOne.

SentinelOne's Financial Standing

Although not yet a public company, SentinelOne is a substantial private entity. It has successfully raised over $695 million in funding, as reported by Crunchbase.

Their most recent funding round, a $267 million investment, occurred last November, resulting in a company valuation of $3.1 billion.

Scalyr's Origins and Development

Scalyr was founded in 2011 by Steve Newman. Newman previously created Writely, a word processor acquired by Google in 2006.

Writely served as the foundation for what ultimately became Google Docs. Newman remained with Google to build the infrastructure necessary to scale Google Docs, leveraging this experience to develop Scalyr.

Throughout its existence, Scalyr secured $27 million in funding, including a $20 million Series A investment in 2017, according to Crunchbase data.

Deal Completion and Team Integration

The acquisition is expected to be finalized this quarter. Following completion, Scalyr’s team of 45 employees will be integrated into SentinelOne.