Back to top

Image: Shutterstock

CrowdStrike (CRWD) Buys Humio, Bolsters XDR Capabilities

Read MoreHide Full Article

CrowdStrike Holdings, Inc. (CRWD - Free Report) recently entered into a definitive agreement to acquire high-performance cloud log management technology provider, Humio. The buyout will enable CrowdStrike to ingest and correlate data from any log or application and generate real-time security. Hence, its eXtended Detection and Response (XDR) capabilities will be fortified.

The $400-million acquisition is expected to close in CrowdStrike’s fiscal first quarter of 2022.

Per Gartner, XDR is “a SaaS-based, vendor-specific, security threat detection and incident response tool that natively integrates multiple security products into a cohesive security operations system that unifies all licensed components.”

XDR builds on endpoint detection and response (EDR) and consolidates multiple products into a unified security incident detection and response platform.

Notably, CrowdStrike has a 10-year expertise in EDR and XDR, and strives to combine endpoint events with network visibility, account and identity insights. The amalgamation of its capabilities with Humio’s analytics platform will ensure the delivery of powerful high-speed contextual index-free XDR.

The acquisition will also help CrowdStrike compete better with Fortinet (FTNT - Free Report) and McAfee’s (MCFE - Free Report) XDR platforms, FortiXDR and MVISION XDR, respectively.

Acquisitions Drive Growth

CrowdStrike has made a couple of strategic acquisitions to boost growth. Most recently, in September 2020, the company completed the acquisition of identity theft protection provider, Preempt Security, enhancing its Zero Trust security capabilities. Further, Preempt Security’s integration fortified CrowdStrike’s Falcon platform’s capabilities to offer protection against identity-based attacks and insider threats.

Prior to this, the company bought Payload Security in November 2017. Payload was specialized in providing automated malware analysis systems to enterprises, governments, universities, SOCs and IR teams.

We believe that these acquisitions have not only strengthened the data-protection capabilities of CrowdStrike but also expanded its customer base. This makes prospects of the acquisition of Humio encouraging.

Moreover, CrowdStrike has a strong balance sheet with ample liquidity position. Cash, short-term investments and marketable securities were $1.06 billion as of Oct 31, 2020. Apart from this, since it carries no long-term debt, the cash is available for pursuing strategic acquisitions, investments in growth initiatives and distribution to shareholders.

Zacks Rank & Another Stock to Consider

CrowdStrike currently carries a Zacks Rank #2 (Buy).

Another top-ranked stock in the broader technology sector is Skyworks Solutions (SWKS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Skyworks Solutions is currently pegged at 18.98%.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>