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N-able's Strategic Acquisition: Enhancing Cybersecurity with Adlumin's XDR and MDR Capabilities

Wesley ParkWednesday, Nov 20, 2024 4:42 pm ET
4min read
N-able, Inc. (NYSE: NABL) has recently acquired Adlumin, Inc., a provider of an enterprise-grade security operations platform, in a strategic move to bolster its end-to-end security and IT management platform. This acquisition, valued at approximately $100 million in initial cash along with additional cash installments and shares of N-able's common stock, aims to enhance N-able's security portfolio and annual recurring revenue (ARR). By integrating Adlumin's cloud-native extended detection and response (XDR) and managed detection and response (MDR) capabilities into its platform, N-able seeks to provide deeper insights and remediation across diverse IT environments.



The acquisition of Adlumin aligns perfectly with N-able's Ecoverse vision, which focuses on unifying security and unified endpoint management into a single platform. By incorporating Adlumin's security operations platform, N-able can deliver a more holistic cybersecurity solution in lockstep with IT management services. This integration addresses the increasing overlap between IT operations and security operations, making advanced protection accessible to all.

One of the key benefits of this acquisition is the integration of Adlumin's AI-powered engine and data models into N-able's platform. This will significantly enhance security intelligence and minimize false positives. Adlumin's AI engine delivers rapid alerts on suspicious activities, enabling more accurate threat identification and reducing false positives. By combining Adlumin's AI capabilities with N-able's unified endpoint management and security solutions, customers will benefit from a deeper level of security intelligence across the full N-able suite.



N-able expects immediate growth in ARR and positive cash flow by late 2025 as a result of this acquisition. The integration of Adlumin's XDR and MDR capabilities is projected to deliver immediate growth in ARR and positive cash flow, indicating a potential return on investment (ROI) of around 20% for shareholders. This strategic move builds on a successful partnership between the two companies, which has already demonstrated robust ARR growth. With this integration, N-able aims to set new standards for cybersecurity excellence in the industry, addressing the increasing overlap between IT operations and security operations.

In conclusion, N-able's acquisition of Adlumin is a strategic and lucrative move that significantly enhances its cybersecurity offerings. By integrating Adlumin's cloud-native extended detection and response (XDR) and managed detection and response (MDR) capabilities, N-able can provide deeper insights and remediation across diverse IT environments. This acquisition builds on the existing partnership between the two companies, which has already demonstrated robust annual recurring revenue (ARR) growth. With this integration, N-able aims to set new standards for cybersecurity excellence in the industry, addressing the increasing overlap between IT operations and security operations. This acquisition not only reinforces N-able's commitment to providing top-tier security solutions but also positions the company to deliver a comprehensive and unified cybersecurity solution, enhancing protection and compliance across IT operations.
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