N-able Enhances Cybersecurity with $266 Million Acquisition of Adlumin

N-able has made a strategic move by acquiring Adlumin, a security operations provider founded by a former Marine Corps officer. The deal, potentially valued at $266 million, aims to integrate comprehensive IT management and security solutions into one cohesive offering. This acquisition comes amidst increasing demand for integrated, cloud-native security solutions among IT professionals.

N-able, known for its Boston-based Managed Service Provider (MSP) platform, emphasized that the acquisition would furnish IT teams with advanced threat detection, intelligence, ransomware defense, and compliance automation capabilities. Adlumin boasts an impressive annual recurring revenue of $22 million and a 60% growth rate, promising significant cross-selling opportunities within N-able’s existing customer base.

John Pagliuca, CEO of N-able, remarked, “Our customers have long indicated that cloud-native XDR and MDR solutions are essential for their security operations. This insight underscored our decision to not only partner with but also acquire Adlumin.” By incorporating Adlumin’s offerings, N-able believes it can accelerate its growth trajectory and better meet the evolving needs of its clients.

Founded in 2016, Adlumin has raised $101.3 million through four funding phases, including a notable $70 million Series B extension in October 2023, led by Syn Ventures. With expertise in cybersecurity anchored by Johnston’s background in national security investigations, Adlumin is well-positioned to enhance N-able’s security portfolio.

N-able’s acquisition structure includes a combination of cash and stock, with $100 million paid upfront, followed by additional cash payments later, depending on performance milestones. Following the announcement, N-able’s stock rose by 3.25% in after-hours trading. The integration of Adlumin’s technologies is expected to provide MSPs and IT professionals with effective security operations, reducing the incidence of false positives and enabling comprehensive threat mitigation.

The incorporation of Adlumin’s cloud-native XDR and MDR solutions is anticipated to streamline operations for MSPs, facilitating seamless data integration across various platforms, including endpoints and cloud services. This strategic alignment addresses the convergence of IT and security operations, positioning N-able to offer comprehensive management solutions that meet contemporary cybersecurity challenges.

Pagliuca also stated that Adlumin’s open platform allows for the ingestion of diverse data sources, enabling thorough visibility across an organization’s IT landscape. This capability is critical for effective risk assessment and remediation, as it empowers technicians to respond proactively to threats rather than reactively.

As cybersecurity becomes ever more critical, N-able’s acquisition of Adlumin marks a significant step towards enhancing its service offerings in the $163 million cybersecurity services market. With over 800 clients under Adlumin’s banner, N-able aims to leverage these relationships to optimize sales strategies and expand its service breadth while addressing the persistent labor shortages in cybersecurity through robust outsourced solutions.

This acquisition represents N-able’s second major strategic initiative since its spin-off from SolarWinds in mid-2021, following its purchase of the Microsoft 365 management platform, Spinpanel, in July 2022. As threats continue to evolve, the enhanced capabilities from this acquisition position N-able to deliver superior cybersecurity support to its client base, addressing both immediate needs and long-term strategic imperatives.