N-Able Acquires Strategic Partner Adlumin to Bolster Cybersecurity Offerings
Deal News | Nov 20, 2024 | Thoma Bravo
N-Able, a global software company dedicated to IT service providers, has acquired Adlumin, enhancing its cybersecurity capabilities. This acquisition builds upon the companies' existing partnership, which includes extended detection and response (XDR) and managed detection and response (MDR) services. The integration of Adlumin’s security operations platform will enable N-Able to offer more comprehensive end-to-end cybersecurity solutions, streamlining IT management for its client base. N-Able anticipates that the acquisition will significantly boost its recurring revenue and expand its market influence, allowing them to address overlapping requirements between ITOps and SecOps. Financially, the deal involves an immediate $100 million in cash, stock payments, and future installment payments and earn-out options depending on performance metrics, totaling potential considerations up to $250 million. This acquisition is expected to be accretive to N-Able’s ARR and cash flow by late 2025.
Sectors
- Cybersecurity
- Information Technology Services
Geography
- United States – The acquisition involves N-Able, based in Burlington, Massachusetts, acquiring Adlumin, highlighting a U.S.-centric business transaction.
Industry
- Cybersecurity – The article discusses the acquisition aimed at enhancing cybersecurity capabilities of an existing platform, incorporating XDR and MDR services.
- Information Technology Services – N-Able provides software solutions assisting IT service providers with security, monitoring, and management, and this acquisition enhances these services.
Financials
- 100 million USD – Initial cash consideration paid by N-Able for the acquisition of Adlumin at closing.
- 1,570,762 shares – Shares of N-Able's common stock issued at the closing as part of the acquisition consideration.
- 120 million USD – Future cash installments to be paid in two parts over the first and second anniversaries of the closing.
- 30 million USD – Potential cash earn-out payments based on performance targets, payable in 2025 and 2026.
- 463 to 464.5 million USD – Expected total revenue for N-Able for the full year 2024, reflecting a 10% year-over-year growth.
- 166.3 to 166.8 million USD – Adjusted EBITDA range for N-Able for the full year 2024, representing approximately 36% of total revenue.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| N-Able, Inc. | Acquirer | Company | A global software company providing IT service providers with security, remote monitoring, management, and data protection solutions. |
| Adlumin, Inc. | Target Company | Company | A provider of an enterprise-grade security operations platform offering cybersecurity solutions for organizations of all sizes. |
| Thoma Bravo | Private Equity Firm | Company | A leading PE firm involved as the backing entity of N-Able. |
| DLA Piper LLP (US) | Legal Advisor to N-Able | Company | Served as legal counsel for N-Able in the acquisition of Adlumin. |
| Piper Sandler & Co. | Financial Advisor to Adlumin | Company | Acted as financial advisor in the acquisition deal for Adlumin. |
| Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. | Legal Advisor to Adlumin | Company | Provided legal advisory services to Adlumin in the transaction. |