Darktrace to Acquire Cado Security in Cloud Defence Push

Darktrace, the cybersecurity company that uses AI to detect network threats, has announced plans to acquire Cado Security, a UK-based provider of cloud forensics technology

Cado Security’s technology captures data snapshots across cloud environments and analyses them for security compromises. The firm’s investigation platform operates across multi-cloud systems, which allow organisations to use multiple cloud providers simultaneously, container environments that package software code, and serverless computing where cloud providers manage the servers.

Darktrace ActiveAI platform to integrate Cado forensics

The acquisition will see Cado’s forensic investigation capabilities integrated into Darktrace's ActiveAI Security Platform, which uses machine learning to identify unusual patterns in network traffic that might indicate a cyber attack. The combined technology aims to enhance data collection across different cloud environments.

The integration will expand the capabilities of Darktrace's Cyber AI Analyst, a system that automates the investigation of security alerts. This technology helps security teams manage the volume of automated security warnings, which can number thousands per day in large organisations.

Research reveals cloud security priorities for 2025

Darktrace’s 2024 State of AI Cybersecurity report identifies cloud security as the primary area where defensive artificial intelligence could impact cybersecurity. The company’s threat research indicates that cloud and Software-as-a-Service platforms are frequent entry points for cyber attacks.

The acquisition responds to the increasing migration of corporate data to cloud platforms and growing reliance on cloud-based services for core business operations. This shift has created new vulnerabilities in corporate networks that require specialised detection capabilities.

Thoma Bravo drives Darktrace R&D expansion

The purchase follows Darktrace’s acquisition by private equity firm Thoma Bravo in October 2024. Cado's research and development teams in London and Bristol will join Darktrace's existing R&D centres in Cambridge and The Hague.

The expansion demonstrates Thoma Bravo's commitment to accelerating Darktrace's growth through AI-augmented cyber solutions. The combined R&D capabilities will focus on developing Cloud Detection and Response technologies that address evolving cyber threats.

Founders bring intelligence service experience

Cado Security was founded by James Campbell and Chris Doman. James previously led Australia's National Incident Response capability at the Australian Signals Directorate and directed PwC's Cyber Incident Response service. His experience includes managing responses to sophisticated cyber espionage and criminal campaigns.

Chris created the ThreatCrowd intelligence portal, which was later acquired by AT&T through its purchase of AlienVault. He has published research on North Korean government cryptocurrency theft operations and Chinese cyber attacks against dissident websites.

The move builds on Darktrace's cloud security strategy, following its launch of cloud protection services for Amazon Web Services in 2023 and Microsoft Azure in 2024. Darktrace currently protects nearly 10,000 customers globally through a workforce of 2,400 employees.

Piper Sandler acted as financial adviser to Darktrace on the transaction.

"The addition of Cado's deep expertise in cloud-based data collection and forensics will enhance our ability to protect customers, ensuring they can operate securely and confidently across all areas of their business," says Jill Popelka, Chief Executive Officer at Darktrace.

James Campbell, Cado Security Co-Founder and CEO, says: “Darktrace is an excellent fit for Cado, providing an opportunity for growth and innovation while allowing our team to advance their careers within a dynamic company deeply committed to R&D and to protecting its customers from growing cyber threats. Our technologies build on each other’s strengths, and we are incredibly excited to work with the Darktrace team to continue to elevate AI-driven cybersecurity capabilities for our combined global customer base.”

The transaction, which requires regulatory approval, is expected to complete in February 2025.

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