Highlights:

  • In 2021, N-able, a former division of SolarWinds Corp., went public through an IPO. It offers software to managed service providers, or MSPs, which are businesses that focus on keeping up the IT infrastructure of other businesses.
  • N-able revealed that its collaboration with Adlumin has already resulted in significant growth in ARR.

A software developer for managed service provision, N-able Inc. acquired its partner Adlumin Inc. to widen its cybersecurity solutions portfolio.

The firms made the deal public. N-able is using 15.7 million shares, or around USD 16 million at the current stock price, and USD 220 million in cash to finance the deal. If specific performance targets are fulfilled, Adlumin investors could get an additional USD 30 million by the end of 2026.

In 2021, N-able, a former division of SolarWinds Corp., went public through an IPO. It offers software to managed service providers, or MSPs, which are companies that focus on keeping up the IT infrastructure of other businesses. MSPs can use N-able’s technology to patch devices, backup data, and keep an eye out for technical problems on client organizations’ devices.

The organization also prioritizes cybersecurity. It offers MSPs options for managing login passwords and safeguarding employee inboxes. N-able also resells cybersecurity software from Adlumin, the business it is purchasing.

Based in Washington, D.C. Adlumin creates the eponymous extended detection and response (XDR) platform. The software maps out user activity patterns in a company’s network using artificial intelligence. Events that deviate from those typical patterns and might be malevolent are then flagged by Adlumin.

The platform’s vulnerability detection tool identifies systems with security holes. Adlumin claims that their program rates vulnerabilities it finds according to criteria including the possibility that a breach will result from them. A regulatory compliance component, meanwhile, automatically assesses how well a business confirms with privacy and cybersecurity regulations like HIPAA.

Adlumin provides a managed detection and response solution in addition to the platform. It can assist clients in determining the extent of a breach and resolving it by using the information that its software gathers about cybersecurity issues. Moreover, it alerts users every time the company data is uploaded to a dark web forum.

According to the company, over 3,500 clients use its products. Prior to the transaction, it raised USD 83 million, the majority of which came from a USD 70 million Series B investment that concluded last year.

“Our customers have been telling us for some time that cloud-native XDR and MDR solutions are mission-critical to their ability to fully secure their customers and users — which solidified our decision to partner with, and now, acquire Adlumin,” said N-able Chief Executive Officer John Pagliuca.

N-able announced that collaborating with Adlumin has already caused remarkable growth in ARR. When the deal closes, the company wants to speed up that revenue growth. N-able also intends to incorporate Adlumin’s technology into its product line more thoroughly.

In light of the acquisition news, the firm revised its financial guidance. N-able is now anticipating somewhat lower adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, than it did in its earlier guidance. Additionally, the software developer raised its sales growth estimate by three percent, to USD 111.5 million to USD 113 million.