AT&T announced its planned acquisition of AlienVault on July 10, 2018, and completed the transaction on August 22, 2018. The companies did not disclose the purchase price. AT&T’s stated aim was to combine AlienVault’s threat intelligence and security software with AT&T’s managed-security services, network visibility and response capabilities, extending enterprise-grade protection to millions of small and medium-sized businesses.
What happened and when
| Date | Event |
|---|---|
| July 10, 2018 | AT&T and AlienVault announced the planned acquisition after both companies approved the agreement. Closing was expected in the third quarter of 2018. |
| August 22, 2018 | AT&T announced that it had completed the acquisition. AlienVault CEO Barmak Meftah became president of AT&T Cybersecurity Solutions and continued as AlienVault’s CEO. |
Why did AT&T buy AlienVault?
AT&T presented the deal as a way to strengthen and broaden its cybersecurity business. AlienVault supplied threat-intelligence expertise and security technology, while AT&T brought threat detection, prevention, response, remediation, managed-security services and network visibility.
The combination was also aimed at customer reach. AT&T said the acquisition would help it expand enterprise-grade security solutions to millions of small and medium-sized businesses, a market that typically has fewer security resources than large enterprises.
A broader security portfolio
AT&T’s strategy was not limited to adding one software product. The company described AlienVault’s technology and security talent as accelerators for a wider cybersecurity portfolio that could connect intelligence, detection and managed services.
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A focus on smaller organizations
AlienVault’s stated mission was to make threat detection and response accessible to companies of all sizes. AT&T said the acquisition would extend capabilities traditionally associated with larger enterprises to small and medium-sized businesses.
What did AT&T get from AlienVault?
Unified Security Management (USM)
AlienVault’s Unified Security Management platform provided threat detection and incident-response functions, along with compliance capabilities described in AT&T’s acquisition announcement. USM was the principal software asset identified in the deal.
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Open Threat Exchange (OTX)
AlienVault also operated the Open Threat Exchange, an open, crowdsourced threat-intelligence community where security researchers shared findings and threat data. OTX added a community-based intelligence layer to AT&T’s security capabilities.
Security talent and research
AT&T said AlienVault’s employees, technology and security expertise would speed up its cybersecurity strategy. The value of the deal therefore included people and research capabilities as well as software.
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What was the purchase price?
The purchase price was not disclosed by either company. AT&T said the transaction was not expected to have a material effect on its financial results.
AlienVault had been founded in 2007 and had raised about $118 million in venture funding, according to Crunchbase figures reported in 2018. That funding history is separate from the acquisition consideration and does not reveal what AT&T paid.
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What changed after the acquisition?
After closing, AT&T created a standalone cybersecurity solutions division led by Barmak Meftah. In his post-closing comments, Meftah said the combined companies could simplify cybersecurity and automate how customers addressed their security needs.
The leadership arrangement placed AlienVault’s chief executive at the head of AT&T’s new cybersecurity organization, linking the acquired company’s threat-intelligence background with AT&T’s broader enterprise and managed-service operations.
Quick Recap
What the deal did not establish
- AT&T and AlienVault did not disclose a purchase price.
- The announcements did not provide a detailed revenue forecast or a quantified customer target beyond AT&T’s reference to millions of small and medium-sized businesses.
- The transaction’s stated strategic rationale does not amount to a product recommendation; it describes how AT&T planned to combine capabilities.
Key takeaways
- Announcement: July 10, 2018.
- Completion: August 22, 2018.
- Core assets: AlienVault USM for security management, detection and response, plus the OTX threat-intelligence community.
- Strategic purpose: combine AlienVault intelligence with AT&T’s detection, response, managed-security and network capabilities.
- Target expansion: bring enterprise-grade security offerings to small and medium-sized businesses.
- Price: undisclosed.
- Post-closing leadership: Barmak Meftah led AT&T Cybersecurity Solutions and remained AlienVault’s CEO.
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