Lacework Acquisition: Key Details, Impact, and What Comes Next

Fortinet's acquisition of Lacework marks a significant step in the cybersecurity landscape. By integrating Lacework's AI-driven cloud-native application protection platform, Fortinet aims to enhance its cloud security offerings. This strategic move is expected to provide customers with a comprehensive, full-stack AI-driven cloud security platform, reinforcing Fortinet's position in the market.

What Is Lacework?

Lacework, founded in 2015, specializes in cloud security solutions. Its core offerings include cloud security, workload protection, identity and entitlement management, and posture management. Unique in the market, Lacework's AI-driven platform, FortiCNAPP, provides unparalleled multi-cloud visibility and protection. The platform's behavior-based threat detection and automated compliance features set it apart, offering faster outcomes and interconnected insights that streamline security operations and reduce alert fatigue.

Who Acquired Lacework?

Fortinet is a global leader in cybersecurity solutions and services, specializing in comprehensive security that integrates networking and protection for enterprises, service providers, and government organizations. Key products include Next-Generation Firewalls, Secure Access Service Edge (SASE), and Cloud-Native Application Protection Platforms. Fortinet secures over 700,000 organizations worldwide and is renowned for its innovation in enterprise-class cybersecurity, maintaining a strong presence across various sectors such as healthcare, education, and financial services.

When Was Lacework Acquired?

Fortinet completed the acquisition of Lacework on August 1, 2024. This acquisition comes at a pivotal time in the cybersecurity industry, where cloud security and cloud-native application protection are increasingly critical. Lacework's recognition in the 2024 Gartner Market Guide for Cloud-Native Application Protection Platforms underscores its market significance. The integration of Lacework's AI-driven platform into Fortinet's Security Fabric aligns with industry trends towards comprehensive, full-stack security solutions leveraging artificial intelligence and machine learning.

Why Was Lacework Acquired?

• Market Expansion: The acquisition of Lacework allows Fortinet to significantly extend its cybersecurity platform. By integrating Lacework’s cloud-native application protection platform, Fortinet enhances its capabilities in cloud security, providing a more comprehensive portfolio of multicloud-capable security solutions. This strategic move positions Fortinet to better serve a broader range of customers and enter new markets.
• Technology Integration: Fortinet benefits immensely from Lacework’s advanced technology, which includes 225 patents related to cloud security and AI. The integration of Lacework’s cloud-native platform with Fortinet’s existing solutions aims to create the most comprehensive, full-stack AI-driven cloud security platform available from a single vendor. This technological synergy enhances Fortinet’s Unified SASE offering and overall cybersecurity solutions.
• Competitive Advantage: The acquisition strengthens Fortinet’s position against competitors by adding Lacework’s advanced capabilities in cloud security and AI. This move is expected to provide Fortinet with a significant competitive edge, leveraging Lacework’s data-powered platform for threat prioritization and insights. The combined expertise and technology from both companies aim to deliver industry-leading solutions, enhancing Fortinet’s innovation capabilities and market presence.

Acquisition Terms

• Acquisition Price: The acquisition price is estimated to be between $200 million and $230 million.
• Payment Method: The payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • The acquisition includes Lacework’s advanced technology, bolstered by 225 patents and patent applications.
  • Fortinet plans to integrate Lacework’s Cloud-Native Application Protection Platform (CNAPP) into its Unified SASE offering.
  • The combination aims to create a comprehensive, full-stack AI-driven cloud security platform.
  • Former Lacework CEO Jay Parikh is not mentioned in the announcement, indicating he may not be part of the transition.

Impact on Lacework

The acquisition of Lacework by Fortinet has led to significant changes in operations and management. Lacework's experienced sales team and talented engineers have been integrated into Fortinet, enhancing its operational structure. However, former Lacework CEO Jay Parikh is notably absent from the transition, indicating a shift in leadership. This integration aims to bolster Fortinet's cloud security capabilities, particularly within its Secure Access Service Edge (SASE) offering, creating a more robust and comprehensive security platform.

On the product front, Lacework's AI-driven cloud-native application protection platform (CNAPP) is now part of Fortinet's Security Fabric, significantly expanding its cloud security portfolio. This integration is expected to provide a unified user experience, addressing overlapping functionalities in cloud security posture management (CSPM) and cloud infrastructure entitlement management (CIEM). While specific employee and customer reactions are not detailed, the strategic alignment suggests a positive outlook for both groups, enhancing trust and satisfaction with Fortinet's innovative solutions.

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