“I am thrilled to announce the acquisition of MistNet. Their solution will facilitate our goal of addressing current and emerging endpoint security needs for our global customers and partners. MistNet complements our existing SIEM platform by enhancing deep network visibility, behavior analytics and threat detection capabilities and will accelerate LogRhythm’s reach into the XDR market.”
– Mark Logan, President & Chief Executive Officer, LogRhythm
“We are excited to join a company as committed to innovation and customer success as LogRhythm. The acquisition creates significant product synergy at the convergence of XDR and SIEM that will positively impact the industry, including the potential for accelerating detection based on open frameworks such as MITRE ATT&CK and driving additional use cases for supply chains, public cloud, and IoT / OT security.”
– Geoffrey Mattson, President & Chief Executive Officer, MistNet
Transaction Overview
- On January 13th, 2021, LogRhythm, Inc. ("LogRhythm"), a leading provider of security analytics and automation, announced it has acquired Mistnet.IO, Inc. ("MistNet"), a cloud-based analytics platform that delivers vast network visibility and accurate threat detection
- MistNet was founded in 2016 with the simple mission of making the connected world a safer place. MistNet focuses on securing complex enterprise environments by developing disruptive technology using cloud-based distributed AI and mist computing technology to dramatically improve threat detection and significantly reduce false positives. Prior to acquisition, MistNet raised approximately $7 million in venture capital funding from investors including WestWave Capital and Foundation Capital
- MistNet provides a single Kubernetes-native AI-driven security platform that offers support for Cisco, Docker, Microsoft Azure, Google Cloud, Amazon Web Services, Elastic, Apache Spark, Splunk, Phantom, VMware, Kubernetes, ServiceNow, Fortinet, Jira, Palo Alto Networks, IBM, Juniper Networks and Hadoop. MistNet's CyberMist product suite is deployed at scale in customers worldwide
- LogRhythm is a Boulder, Colorado-based provider powering today's security operations centers (SOCs). LogRhythm's award-winning NextGen SIEM Platform delivers comprehensive security analytics; user and entity behavior analytics (UEBA); network detection and response (NDR); and security orchestration, automation, and response (SOAR) within a single, integrated platform. LogRhythm is a portfolio company of Thoma Bravo
- The terms of the deal were not disclosed
- LogRhythm enables security professionals at leading organizations including NASA, Xcel Energy, and Temple University to promote visibility for their cybersecurity program and reduce risk to their organization. LogRhythm is the highest-ranked provider for customer satisfaction in G2 Research's grid report for SIEM
Transaction Significance
- The acquisition will allow LogRhythm to deliver intelligent, machine-learning based detection and response capabilities that incorporate network detection, user and entity behavior analytics (UEBA), endpoint detection and response data (EDR), and additional MITRE ATT&CK detection to solve current and emerging security and risk problems
- The acquisition delivers the ability to collect and enrich tremendous amounts of security data 'on location' generating exceptionally accurate behavioral models and threat models without having to move any of the data. MistNet's patent-pending TensorMist-AITM technology also brings powerful AI capabilities to LogRhythm by constructing a geo-distributed meshed data pipeline that combines scale-out data management with distributed processing analytics
- The Network Traffic Analysis (NTA)/Network Detection and Response (NDR) market is approximately $1.5B and will grow at 17 percent CAGR between 2020 and 2026, according to Global Market Insights. As organizations seek to simplify, optimize and extend their detection and response capabilities, they look to vendors to provide more holistic services, which is fueling the consolidation trend among NDR, EDR, UEBA and security and event management (SIEM) solutions
- TensorMist-AI technology provides improved network visibility to increase detection and reduce the time to respond to advanced persistent threats (APTs) that are commonly able to bypass traditional perimeter defenses
- LogRhythm's comprehensive SaaS platform and cloud collection capabilities, combined with MistNet's distributed analytics, will empower customers to manage their security and compliance needs easily and with the highest return on investment
- The acquisition creates significant product synergy at the convergence of XDR and SIEM, including the potential for accelerating detection based on open frameworks such as MITRE ATT&CK and driving additional use cases for supply chains, public cloud, and IoT/OT security
Momentum Cyber's Role
- Momentum Cyber acted as exclusive financial & strategic Advisor to MistNet
- This transaction demonstrates Momentum Cyber's deep domain expertise in cybersecurity M&A and its proven track record advising leading network detection and response (NDR), threat detection analytics, and AI-driven security platform providers on strategic transactions
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.