Cybereason & Trustwave: What a Merger Brings Customers

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This merger represents a significant development in the industry's ongoing consolidation trend
This union between Cybereason and Trustwave could see them combining their respective strengths in EDR and MDR, offensive security, and threat intelligence

In an increasingly dynamic cybersphere, the cybersecurity industry is witnessing a significant shift towards consolidation. 

This comes in the terms of both capabilities, and partnerships to to increase those capabilities.  

A recent announcement of a merger between Endpoint Detection and Response (EDR) firm Cybereason and managed security services provider (MSSP) Trustwave highlights this.

A strategic consolidation

Backed by majority investor SoftBank, the merger comes at a crucial juncture in the cybersecurity market. 

As organisations grapple with increasingly sophisticated threats and a persistent shortage of cybersecurity talent, the need for robust, all-encompassing security solutions has never been more pressing. 

This union between Cybereason and Trustwave aims to address these challenges by combining their respective strengths in EDR, Managed Detection and Response (MDR), offensive security, and threat intelligence.

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The combined entity aims to deliver a comprehensive suite of services, including managed XDR (Extended Detection and Response), offensive security, digital forensics, and incident response.

Eric Gan, Chairman and CEO of Cybereason, expressed enthusiasm about the merger's potential, particularly in the Japanese market where Cybereason has already established a strong presence. 

“Cybereason, with its strong presence in Japan, is particularly excited to offer our combined EDR and MDR solutions in this market, where we have already seen distinct success,” Eric stated.

The consolidation is expected to leverage Trustwave's robust market presence in the Americas, UK, Australia, the Middle East, and the Public Sector, complementing Cybereason's strong position in Japan and significant foothold in Continental Europe. 

This geographical synergy is poised to create a truly global cybersecurity powerhouse.

Addressing Market Challenges

The merger comes at a critical time for Cybereason. Despite raising approximately roughly US$850m with aspirations of going public at a valuation of nearly US$5bn just a few years ago, the company has faced challenges in the competitive endpoint security market. 

Cybereason's struggles to gain significant market share in the US, despite a formidable endpoint security offering and a partnership with Google announced in 2021, led to layoffs in 2022.

This consolidation with Trustwave could potentially address these challenges by broadening Cybereason's market reach and diversifying its service offerings. 

The merger aims to create a unified front against cyber threats by amalgamating Cybereason's and Trustwave's services in managed security, cybersecurity consulting, and Digital Forensics and Incident Response.

For customers of both Cybereason and Trustwave, the merger promises to bring a more comprehensive and integrated cybersecurity portfolio. 

“Our merger with Cybereason is a strategic step in delivering a more dynamic and comprehensive offensive and defensive cybersecurity portfolio to our clients across all market segments,” says Trustwave CEO Eric Harmon. 

Trustwave CEO Eric Harmon

The combined entity will focus on accelerating strategic investments in cybersecurity technologies and maximising Microsoft E5 investments through advanced Microsoft Security services.

Looking ahead

While the two companies will continue to function independently, they plan to collaborate strategically on value-added services and capabilities to expand their market presence. 

This approach allows for the preservation of each company's strengths while fostering synergies that can benefit their combined client base. The transaction is expected to close in early 2025. 

As the cybersecurity landscape continues to evolve, this merger between Cybereason and Trustwave represents a significant development in the industry's ongoing consolidation trend. 

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