LevelBlue, one of the world’s largest managed security service providers, on Tuesday announced a definitive agreement to acquire extended detection and response (XDR) provider Cybereason.
Following the acquisition, Cybereason’s XDR technology and digital forensics and incident response (DFIR) capabilities will be integrated into LevelBlue’s portfolio of managed security services.
Current Cybereason backers SoftBank Corp., SoftBank Vision Fund 2, and Liberty Strategic Capital will become investors in LevelBlue. Financial details have not been disclosed.
Despite raising roughly $850 million with hopes of going public through an IPO at a valuation of nearly $5 billion just a few years ago, Cybereason struggled in the competitive endpoint security market and announced layoffs in 2022. While Cybereason has a formidable endpoint security offering, it particularly struggled to gain significant market share in the US in the category when up against competitors like CrowdStrike and SentinelOne, despite a partnership with Google announced in 2021.
“Joining LevelBlue marks an exciting new chapter for Cybereason,” said Cybereason CEO Manish Narula. “This acquisition strengthens our collective capabilities across XDR, MDR, offensive security, DFIR, and cybersecurity consulting services, enabling us to unlock additional value for our clients and their counsel and cyber insurance partners globally.”
LevelBlue is an AT&T Cybersecurity spinoff launched last year as a result of an alliance between AT&T and private equity firm WillJam Ventures.
This is LevelBlue’s third acquisition this year, after Trustwave and Aon’s Cybersecurity & IP Litigation Consulting groups (Stroz Friedberg and Elysium Digital).
Data from SecurityWeek’s cybersecurity M&A tracker shows that more than 330 deals have been announced to date in 2025.
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