SentinelOne Acquisition

Investment Analysis Clubs Saul’s Investing Discussions
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We’ll get a lot more detail in SentinelOne’s upcoming earnings report but the company recently put out a press release that they acquired Attivo Networks for $616 million.

Source: https://investors.sentinelone.com/press-releases/news-detail…

This is a sizable acquisition for them so I wanted to do a little digging. In comparison, Scalyr was for $155 million.

Here are a few quick things I found:

  1. In 2020, Attivo was on Deloitte’s list of fastest growing companies. Apparently the company grew revenue by 724% that year (though we don’t know how much of a revenue base that was on).

In SentinelOne’s press release they also say that this acquisition will be accretive to growth, gross margin and non-GAAP operating margin.

Source: https://www.businesswire.com/news/home/20201118005664/en/Att…

  1. Here is an interview from last July with the CEO, Tushar Kothari. In it, he talks about a new focus for protecting credentials of employees. He mentions that OKTA and Microsoft Active Directory do a good job of provisioning access to applications and identity management but fall a little short in limiting breaches.

Source: https://m.youtube.com/watch?v=D8Floh19Ccs

  1. In December, Attivo’s CEO tweeted that they had built an application for SentinelOne’s XDR marketplace. So these two companies know each other very well. SentinelOne has had a front down seat to see Attivo’s growth because they have all the data from how well Attivo’s product is selling on their marketplace.

Source: https://twitter.com/attivonetworks/status/146645474352224256…

We’ll get much more details soon but it seems like an interesting fit.

Best,
Fish

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Thanks for the links and context Fish.

I’m optimistic of their ability to integrate (at least partially) quickly with Attivo, considering the Detection Net Suite is currently available in XDR. A bit more details about that integration can be found at https://www.attivonetworks.com/sentinelone-marketplace/

Attivo appears highly focused on Active Directory attacks and privilege escalation, which while ultimately limiting for a stand alone company feels like an excellent bolt on for Sentinel One.

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