Exabeam, LogRhythm to Merge, Boost AI Security

Exabeam and LogRhythm have entered a merger agreement, combining the strengths from each organization to advance AI-driven security operations.

The combined company will bring together two security information and event management (SIEM), and user and entity behavior analytics (UEBA) providers with demonstrated track records in serving customers with effective threat detection, investigation and response (TDIR). The merger should close in the third quarter, subject to regulatory approvals and customary closing conditions.

“As a combined organization, we will continue to push the envelope of security operations innovation with solutions that bring AI, automation, SIEM, security analytics and UEBA together to deliver a holistic approach to combating cyber threats,” said Adam Geller, Exabeam’s CEO. “With AI and cloud as driving forces that can’t be ignored in the market, we look forward to collectively addressing the needs of our joint prospects and customers to further enhance their cybersecurity TDIR capabilities."

Exabeam's Adam Geller

Gartner recently named Exabeam a "leader" in its 2024 Gartner Magic Quadrant for SIEM. It was the fifth straight year for the recognition.

Benefits of Exabeam-LogRhythm Merger

The companies said customers will benefit from enhanced R&D investments and product innovation, greater service and support coverage, and access to a larger AI-driven product portfolio, including cloud-native and on-premises options.

Related:Exabeam: Smaller Means Stronger In SIEM Market

“Together, our expertise and shared strategic vision will accelerate innovative AI-driven cybersecurity solutions for customers around the world,” said Chris O’Malley, LogRhythm’s CEO. “With more than 20 years of best-in-class SIEM and UEBA experience in serving thousands of worldwide customers, we are poised to create a new employee-inspired organization that encapsulates the absolute best of what we both offer. Vigilant CISOs have eagerly awaited the emergence of a strong, customer-obsessed, singularly-focused global leader in AI-driven security operations—one that offers a best-of-breed alternative to the frustratingly complex options on the market today. That day has arrived.”

LogRhythm's Chris O'Malley

In April, LogRhythm announced its eighth consecutive quarterly release. The latest innovations to LogRhythm Axon facilitate dashboard and search import/export to community repositories, bridging the communication gap. In addition, LogRhythm Axon introduces key features to streamline auditing for compliance standards and enable greater efficiency with security analytics mapped to MITRE ATT&CK use cases.

More Consolidation Coming

Eric Parizo, managing principal analyst at Omdia, which shares a parent company with Channel Futures (Informa), said the Exabeam-LogRhythm merger is likely the first of several dominos to fall as the next-generation SIEM market likely undergoes a consolidation in the next few years.

“Both vendors experienced challenges with growth momentum in recent years, in particular both were behind the market in their transition to fully cloud-based next-generation SIEM solutions,” he said. “While a merger, in theory, buys them some time to produce a combined solution set that is more competitive, the reality is that the process of combining and rationalizing their technologies, corporate structures and their respective teams is likely to create further disruption and ultimately further hinder competitive prospects.”

In the meantime, this will potentially create opportunities for other mid-tier, next-generation SIEM vendors, all of which have seen their market share decline versus the "big three" of SIEM: IBM, Microsoft and Splunk, Parizo said.