CrowdStrike to Acquire Flow Security to Expand Its Cloud Security Leadership with Data Security Posture Management (DSPM)
CrowdStrike (CRWD) announces the acquisition of Flow Security, enhancing its cloud data protection capabilities. The acquisition aims to provide real-time data protection in all states, at rest and in motion, across cloud, on-premise, and applications. CrowdStrike aims to redefine modern data security by offering a unified platform that secures data flow through various environments. The acquisition is set to strengthen CrowdStrike's position in cloud security and deliver comprehensive data protection solutions.
The acquisition of Flow Security by CrowdStrike represents a strategic move to enhance the cybersecurity firm's capabilities in data protection. The integration of Flow Security's cloud data runtime security into CrowdStrike's Falcon XDR platform is significant. By extending security protection beyond static environments to include data in transit, CrowdStrike addresses a critical vulnerability in cloud data security. As adversaries become more sophisticated, the ability to monitor and protect data as it moves through various states and across different platforms is crucial. This acquisition likely positions CrowdStrike as a more comprehensive security provider in the market, potentially increasing its competitive edge and market share.
The financial terms, predominantly cash with an equity component, reflect CrowdStrike's commitment to investing in its platform's growth. The impact on CrowdStrike's financials will depend on the acquisition's success in driving additional revenue and whether the integration of Flow Security's technology can lead to cost efficiencies. Investors should monitor the post-acquisition performance closely, looking for signs of successful integration, customer adoption and contribution to CrowdStrike's overall financial health.
With the proliferation of cloud computing, data security has become a paramount concern for businesses. CrowdStrike's move to acquire Flow Security and integrate its data security posture management (DSPM) into its Falcon XDR platform reflects an industry trend towards unified cloud security solutions. This approach simplifies security management and reduces the risks associated with using multiple cloud point-products. By offering a single platform that provides visibility into data flows and interactions with applications, CrowdStrike may reduce the complexity for businesses managing cloud infrastructures and improve their security posture.
From a technology standpoint, the ability to secure data from code to cloud is a notable advancement. As businesses increasingly adopt SaaS applications, third-party APIs and cloud infrastructure, the need for a solution that can seamlessly protect data across these environments is clear. The integration of DSPM capabilities positions CrowdStrike to meet this demand, potentially leading to increased customer satisfaction and retention. Stakeholders should look for the platform's ability to adapt to evolving cloud environments and the subsequent impact on CrowdStrike's market positioning.
The cybersecurity market is rapidly evolving, with data protection becoming a key differentiator among providers. CrowdStrike's acquisition of Flow Security is likely to resonate well with enterprises looking for comprehensive cloud data security solutions. The expanded capabilities of the Falcon XDR platform could attract new customers and retain existing ones, given the growing demand for data security in real-time across various environments.
Market dynamics suggest that CrowdStrike's focus on cloud-native cybersecurity and its expansion into data security could potentially disrupt the market, challenging competitors to match its offerings. The long-term impact on CrowdStrike's market position will depend on how effectively the company integrates Flow Security's technology and expands its customer base. Investors should consider the broader industry trends towards cloud adoption and the increasing importance of data security in evaluating CrowdStrike's future growth prospects.
03/05/2024 - 04:02 PM
CrowdStrike redefines modern data security with the unified platform that protects data at rest and in motion as it flows through the cloud, on-premise and within applications
AUSTIN, Texas --(BUSINESS WIRE)--
CrowdStrike (Nasdaq: CRWD) today announced it has agreed to acquire Flow Security, the industry's first and only cloud data runtime security solution. With this acquisition, CrowdStrike is setting the standard for modern cloud security with comprehensive real-time data protection spanning endpoint and cloud environments, delivering the only cloud data protection platform that secures data in all states, both at rest and in motion.
An organization’s most critical information remains the primary target of the adversary. As businesses use more data than ever, the growing reliance on cloud has led to the distribution of data across cloud-based services, third-party APIs and GenAI applications. Adversaries are increasingly becoming adept at exploiting the gaps created by stitched together platforms and cloud point-products to target and steal sensitive data. Stopping breaches requires a unified security platform that natively protects data at rest and in motion as it flows through the cloud, on-prem and within applications. With the acquisition of Flow Security and by bringing data security posture management (DSPM) to the CrowdStrike Falcon® XDR platform, CrowdStrike is setting a new standard for modern cloud security with data security innovations that discover, classify, and protect data in all states from the risk of exposure, wherever it moves or resides.
“CrowdStrike was born in the cloud and pioneered cloud-native cybersecurity. We have been consistently recognized as the strategic leader in cloud security by delivering the outcomes customers need most from a single, unified platform,” said George Kurtz, co-founder and CEO of CrowdStrike. “With the acquisition of Flow Security, we’re expanding our cloud leadership by protecting data in all states as it flows through the cloud, and are redefining the future of data protection by securing data from code, to application, to device and cloud.”
“Since our founding, Flow Security has focused on removing the complexity of securing the massive amounts of critical data businesses manage daily. We saw that the market lacked a solution that provided comprehensive protection of the flow of data as it traversed SaaS applications, on-prem, cloud infrastructure, third-party APIs, etc., and that this lack of visibility and control presented a critical risk to the enterprise,” said Jonathan Roizin, CEO of Flow Security. “We look forward to working with the cloud security leader, CrowdStrike, to bring to market the most extensive cloud data protection solution.”
With the acquisition of Flow Security, the CrowdStrike Falcon platform is poised to become the industry’s most comprehensive data security platform. Following the closing of the acquisition, CrowdStrike plans to fully deliver native Flow Security DSPM capabilities in Falcon Cloud Security as part of the Falcon XDR platform, enabling customers to consolidate cloud point solutions and protect the entire cloud estate. Through this, CrowdStrike will provide visibility into critical cloud data flows, insight into how data interacts with applications, and the ability to detect when sensitive data is at risk or unintentionally leaving an environment.
Transaction Details
The purchase price will be paid predominantly in cash, with a portion delivered in the form of equity subject to vesting conditions. The proposed acquisition is expected to close during CrowdStrike’s fiscal first quarter, subject to customary closing conditions.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the benefits of the acquisition to CrowdStrike and its customers, CrowdStrike’s plans to integrate Flow Security’s technology and operations, and the closing of the acquisition. You should not place undue reliance on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated as a result of risks and uncertainties. There are a number of factors that could cause actual results to differ materially from statements made in this press release, including the satisfaction of conditions to closing the acquisition, CrowdStrike’s ability to integrate Flow Security’s technology and operations, and other risks described in the filings CrowdStrike makes with the Securities and Exchange Commission from time to time, including CrowdStrike’s most recently filed Annual Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q, and subsequent filings. All forward-looking statements in this press release are based on information available to CrowdStrike as of the date hereof, and CrowdStrike does not assume any obligation to update any of these forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.
About CrowdStrike
CrowdStrike (Nasdaq: CRWD), a global cybersecurity leader, has redefined modern security with the world's most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity and immediate time-to-value.
CrowdStrike: We stop breaches.
Learn more: https://www.crowdstrike.com/
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© 2024 CrowdStrike, Inc. All rights reserved. CrowdStrike, the falcon logo, CrowdStrike Falcon and CrowdStrike Threat Graph are marks owned by CrowdStrike, Inc. and registered with the United States Patent and Trademark Office, and in other countries. CrowdStrike owns other trademarks and service marks, and may use the brands of third parties to identify their products and services.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305310847/en/
Kirsten Speas
press@crowdstrike.com
Source: CrowdStrike
What did CrowdStrike (CRWD) announce regarding data security?
CrowdStrike announced the acquisition of Flow Security, the industry's first cloud data runtime security solution, aiming to provide comprehensive real-time data protection in all states, both at rest and in motion.
How does the acquisition of Flow Security impact CrowdStrike's (CRWD) cloud security?
The acquisition enhances CrowdStrike's cloud security capabilities by offering a unified platform that secures data flow through cloud, on-premise, and applications, setting a new standard for modern cloud security.
What is the goal of CrowdStrike (CRWD) with the acquisition of Flow Security?
CrowdStrike aims to redefine modern data security by providing a comprehensive data protection platform that natively protects data at rest and in motion, delivering real-time data protection across various environments.
When is the expected closing date for the acquisition of Flow Security by CrowdStrike (CRWD)?
The proposed acquisition is expected to close during CrowdStrike’s fiscal first quarter, subject to customary closing conditions.
How will CrowdStrike (CRWD) finance the acquisition of Flow Security?
The purchase price will be paid predominantly in cash, with a portion delivered in the form of equity subject to vesting conditions.
