ReliaQuest, an open Extended Detection and Response (XDR) startup, has entered into an agreement to acquire Digital Shadows, a threat intelligence startup, for USD 160 million. 

Founded in 2011, Digital Shadows delivers actionable threat intelligence, which combines data analytics, application programming interface integrations, and automation features through its platform, SearchLight. The platform leverages a threat model that adapts to an organization’s risk profile and appetite in order to protect against digital risks such as cyberattacks, loss of intellectual property, and loss of brand reputation and integrity. In 2021, the company served over 400 clients in 52 countries.

ReliaQuest will integrate its GreyMatter platform with XDR capabilities across cloud, network, and endpoint environments with Digital Shadows’ SearchLight platform with digital risk protection and external threat intelligence capabilities. This joint solution will provide security operations teams with internal and external visibility that enables them to automatically detect and respond to threats in real time.

Following the acquisition, ReliaQuest will also absorb 180 employees of Digital Shadows into its employee headcount of 800.

Analyst QuickTake: This marks the first acquisition for ReliaQuest following its growth equity round in December last year, in which it reached unicorn status. The company expected to use the funds to innovate its XDR platform with new AI and ML capabilities and double its team of 700 (as of December 2021) by February 2023, with 50 to 70 new hires every month. The company expected revenue growth of over 50% in 2022.