Two big moves on the capital front.
LogicMonitor has raised eight hundred million dollars in a funding round led by investors including PSG and Golub Capital, valuing the company at two point four billion dollars, which includes Vista Equity Partners selling a minority stake in the business. With this latest funding, LogicMonitor aims to explore strategic mergers, expand into new markets, and diversify its product offerings. This surge in investment comes as the demand for artificial intelligence drives the need for robust data center monitoring solutions.
N-able Technologies has acquired Adlumin, provider of XDR, MDR, and SIEM security, for approximately $225 million in cash and stock, paid out over installments. This acquisition enhances N-able’s capabilities in cloud-native extended detection and response and managed detection and response services, aiming to strengthen customer security worldwide. With this move, N-able anticipates immediate growth in annual recurring revenue and aims to set a new standard of security excellence for managed service providers. N-able’s updated financial outlook for the fourth quarter of 2024 estimates total revenue between 113 million and 115 million dollars, reflecting a year-over-year growth of 5 to 6 percent. Adlumin closed a series B round in October 2023 for $70 million. The stock is up slightly today on the news after the market closed, after hitting it’s 52-week low yesterday.
Why do we care?
So, disclosure, I’m a N-Able shareholder. N-Able paid $100M in cash at closing, essentially just picking up most of the investment from the Series B round and paying those investors, so this is a wash. A solid theory is that they picked up a floundering partner, as N-Able had been using Adlumin in a partnership deal for about a year. It’s a build-a-platform play rather than a use best-in-breed one. N-Able uses SentinelOne for EDR.
LogicMonitor looks to be bulking up.