CrowdStrike to acquire Adaptive Shield for cloud security

CrowdStrike has announced its intention to acquire Adaptive Shield, a company known for its SaaS security solutions, in a move set to establish it as the only cybersecurity vendor offering comprehensive identity-based protection across the entire cloud ecosystem.

Identity-based attacks are on the rise with malware-free initial access attacks accounting for 75% of such incidents. Cloud exploitation cases increased by 110% last year, highlighting the vulnerability of SaaS environments which are forecasted to become the largest segment of cloud computing by 2024. This acquisition by CrowdStrike aims to address these burgeoning cybersecurity threats.

George Kurtz, Chief Executive Officer and Founder of CrowdStrike, noted, "CrowdStrike was built to tackle the toughest cybersecurity challenges, and we drive relentless innovation based on what our customers need to stay ahead of modern threats. As SaaS and AI adoption grows, every new application brings additional complexity and the risk of misconfigurations across human and non-human accounts that create openings for sophisticated attacks. With the acquisition of Adaptive Shield, CrowdStrike will continue to set the standard for identity-based protection in the cloud, delivering best-in-class SaaS protection from the Falcon platform."

The deal will enable CrowdStrike to integrate Adaptive Shield's capabilities into its Falcon platform, promising users unified security across on-premises Active Directory, cloud-based identity providers, and SaaS applications. This merger is expected to benefit customers by providing end-to-end identity visibility and security, streamlining the detection and response process across multi-domain environments.

Maor Bin, CEO and Co-Founder of Adaptive Shield, remarked, "Widespread adoption of SaaS applications has rapidly expanded the enterprise attack surface, as shared responsibility models and fragmented security controls make SaaS environments a prime target. Our mission perfectly complements CrowdStrike, stopping SaaS breaches while further accelerating consolidation on cybersecurity's most comprehensive platform. I'm incredibly proud of our team for building the most advanced SaaS security solution, defining the market."

The acquisition is poised to be concluded during CrowdStrike's fiscal fourth quarter, subject to customary conditions, and will be financed largely in cash with a portion of stock options subject to vesting conditions.