WatchGuard reports that it has acquired ActZero, a provider of MDR services, for an undisclosed amount.
According to WatchGuard, the acquisition accelerates the company’s expansion in the MDR market. This is part of a strategy that began in 2023. Both companies primarily target managed service providers (MSPs). These resell the services to their customers.
ActZero’s technology and staff will form the basis of WatchGuard’s MDR product line. WatchGuard plans to integrate its own MDR offerings into ActZero’s technology. It states that this will not inconvenience customers.
Rapid integration
WatchGuard CEO Prakash Panjwani speaks of a reverse integration. WatchGuard is integrating its platform with ActZero. He wants to accomplish that in 90 days so that partners can use it immediately.
ActZero has focused exclusively on the MDR market since its founding in 2019. According to market intelligence service Crunchbase, the company raised more than $40 million. Panjwani said the company is known for its strong onboarding and customer service and that the platform effectively uses machine learning to reduce false positives and redundant notifications.
Panjwani also praised ActZero’s open architecture, which enables integration with endpoint detection and response software from CrowdStrike Holdings and Microsoft. That strategy aligns with WatchGuard’s.
Focus on MSPs
Panjwani said ActZero’s focus on MSPs was another attractive factor. Unlike enterprises, MSPs typically sell security services to many small and medium-sized customers. Automation and scalability are crucial because they work with so many users.
Consistency is also essential. MDR providers who communicate directly with end users often create complications for service providers. At WatchGuard, the partner is the end user’s point of contact.
This is WatchGuard’s ninth acquisition and sixth since 2016. Founded in 1996, the company went public in 1999 but struggled to implement its product and marketing strategies.