Exabeam to Merge with LogRhythm

Exabeam and LogRhythm have merged to create a security information and event management (SIEM) system aimed at “AI-driven security operations.”

The move is welcome news to enterprises looking for ongoing consolidation in the cybersecurity market, which is characterized by multiple specialized tools with little integration. “Vigilant CISOs have eagerly awaited the emergence of … a best-of-breed alternative to the frustratingly complex options on the market today. That day has arrived,” said LogRhythm CEO Chris O’Malley in a press release.

The two companies specialize in cloud-native SIEM as well as user entity and behavior analytics (UEBA). The former creates detailed logs, event correlation, and information for compliance purposes. The latter flags anomalous behavior from users or bots. Exabeam also says its Exabeam Security Operations Platform is driven by AI. And in February 2024, Exabeam added Threat Center, a platform for threat detection, investigation, and response (TDIR), along with an Exabeam Copilot that uses generative AI to help manage threat response.

No announcement was made regarding the name of the merged company, who will lead it, where the headquarters will be located, and whether all employees will remain. An Exabeam spokesperson said none of this information will be public until the deal closes in the third quarter of 2024.

Neither company featured the news on their websites.

A Suitable Match

Both Exabeam and LogRhythm bring various strengths. Exabeam, founded in 2013, is headquartered in Foster City, Calif., and has about 500 employees. It has been a noted presence in SIEM for years. Its New-Scale SIEM suite runs on Google Cloud Platform and includes Exabeam Security Log Management for acquiring and parsing log data; Exabeam SIEM, which adds correlation, analytics, and incident management for data from third-party sources; and Exabeam Fusion, a data lake that, with the help of Exabeam Security Analytics and Exabeam Security Investigation, offers UEBA and TDIR.

As noted, Exabeam has focused on AI, claiming to have the technology embedded in its SIEM products, while offering the copilot. This could be a deciding factor in the merged company's future success.

LogRhythm, founded in 2002, is headquartered in Boulder, Colo., and it too has about 500 employees. It offers cloud-hosted SIEM via its Axon SaaS product; on-premises SIEM and UEBA is available as well, and the company’s NetMon network traffic analytics software is also hosted on the customer’s site.

Notably, both companies appear to lack full-scale security orchestration, automation, and response (SOAR) products, which extend control to cybersecurity operations. Indeed, if the merged company expects to excel in AI, this is an area in which it must focus.

Similar Struggles

Both Exabeam and LogRhythm have struggled with leadership. In 2018, private equity firm Thoma Bravo took over the majority of LogRhythm shares. Subsequently, LogRhythm lost its longstanding CEO, Andy Grolnick, and two CEOs have served since then, including Mark Logan and Chris O’Malley, the latter who joined in February 2022 and remains in charge.

Exabeam also has had a number of CEO changes. Since co-founder Nir Polak left in June 2021, two CEOs have served: Michael DeCesare from June 2021 to July 2023, and the current CEO Adam Geller since DeCesare left. In addition, the company laid off 20% of its workforce in October 2023, ostensibly in part to reposition the company for strength in AI.

Futuriom Take: Both Exabeam and LogRhythm have had some SIEM success, but they both need more scale. The focus on AI could be the key to the merger’s success.