Late yesterday, IT management platform vendor N-able announced it is acquiring Adlumin, a cloud-native XDR/MDR vendor that N-able had partnered with last year.
“Our customers have been telling us for some time that cloud-native XDR and MDR solutions are mission-critical to their ability to fully secure their customers and users—which solidified our decision to partner with, and now, acquire Adlumin,” said CEO and President John Pagliuca (pictured above at the company’s March 2024 conference) in a press statement. “We’ve proven out customer demand with robust growth and we determined that we could scale our business faster if we owned it.”
In a webcast announcing the acquisition, Pagliuca pronounced, “This completes the third leg of stool, bringing IT management, data protection, and security together under one roof, empowering MSPs, MSSPs, and IT professionals to better safeguard the IT assets that power today’s digital world. By combining Adlumin’s, cutting edge XDR technology and security operations MDR capabilities with N-able’s robust security suite, data protection solution, and IT management platform, we feel we are decisively elevating our ability to secure and manage customer IT environments.”
He added, “This partnership has done exceedingly well. The solution has been one of our fastest growing SKUs ever at this stage of its development and has powered material ARR growth. Based on this, we’ve determined that progressing from partners to a unified organization is the right next step. As one unit, we expect to achieve stronger technical integrations that drive better customer outcomes.”
In March, MSP Success asked Pagliuca if N-able planned any acquisitions. His response was, “We’ve been generating a good amount of cash, and we intend to put that cash to good use to help the MSPs move their agenda forward. So yeah, we look to be acquisitive. I’m not going to tell you [what type of company we are looking to buy], but what I would say is, we’re organized by these three business units. We have a monitoring and management business unit. We have a security business unit, which has our security services in there. And then we have our data protection. What I can guarantee you is it’ll be within those three business units.
Top MSP Platform Players Beefing Up Their Portfolios
Among the top MSP platform players, N-able holds the third spot in market share, according to Canalys, which puts ConnectWise in the number one spot, followed closely by Kaseya. Among the three, N-able is the only public company.
All three have been making strategic moves, beefing up their portfolios and their executive teams. Last week, N-able announced three additions to its executive team: Jonathan Bartholomew, vice president of Channel Sales; Paul Monaghan, vice president of EMEA Sales; and Andy Hudson, vice president of international marketing.
N-able’s acquisition of a cloud-based detection and response vendor follows on the heels of similar moves by ConnectWise with its acquisition of Axcient and SkyKick in September and Kaseya’s acquisition of SaaS Alerts in October.
N-able CFO Tim O’Brien in the webcast said that Adlumin was on track to hit $22 million in ARR this year with over 60% YoY growth, “net of the N-able partnership. Like N-able, approximately 100% of their revenue is recurring in nature. They have over 800 customers net of the N-able partnership. They also have a sizable number of reseller partners. Both these numbers are growing at pace. They have built a solution that resonates with customers and they are taking market share. We anticipate the integration of this business to be immediately accretive to ARR growth and we aim to continue their admiral growth trajectory.”
O’Brien said he expects the acquisition to drive growth in several ways, including to “use XDR and MDR as part of a bundling strategy to drive exceptional value for MSPs looking to manage, backup and secure their IT stacks.”
The Adlumin acquisition fills a gap in N-able’s portfolio, Pagliuca said in the webcast. “We’re adding another beachhead to N-able.”
This is a developing story, so check back for more details.
