8-KOther Events

CrowdStrike Holdings, Inc. 8-K Report, Corporate Update (Sep 24, 2020)

Filed September 24, 2020For Securities:CRWD

Summary

CrowdStrike Holdings, Inc. announced on September 23, 2020, that it has entered into a definitive agreement to acquire Preempt Security, Inc. for approximately $96 million in a mix of cash and stock. Preempt Security is recognized for its Zero Trust and conditional access technology, enhancing real-time access control and threat prevention capabilities. This strategic acquisition is expected to bolster CrowdStrike's existing security platform by integrating Preempt's advanced technology, further strengthening its cloud-delivered endpoint and cloud workload protection. The transaction is anticipated to close in the third quarter of CrowdStrike's fiscal year 2021, subject to standard closing conditions. Investors should monitor the integration progress and its impact on CrowdStrike's market position and competitive advantage in the cybersecurity space.

Key Highlights

  • 1CrowdStrike to acquire Preempt Security for approximately $96 million ($86 million cash, $10 million stock/options).
  • 2Preempt Security is a provider of Zero Trust and conditional access technology.
  • 3Acquisition aims to enhance CrowdStrike's real-time access control and threat prevention capabilities.
  • 4The integration is expected to strengthen CrowdStrike's cloud-delivered endpoint and cloud workload protection.
  • 5The deal is expected to close in CrowdStrike's fiscal third quarter of 2021.
  • 6The announcement was made via an 8-K filing on September 23, 2020.

Frequently Asked Questions

The acquisition of Preempt Security is intended to enhance CrowdStrike's existing security platform by integrating Preempt's Zero Trust and conditional access technology. This will allow CrowdStrike to offer improved real-time access control and threat prevention, further strengthening its cloud-delivered endpoint and cloud workload protection offerings.

CrowdStrike expects to pay approximately $86 million in cash, plus $10 million in stock and options subject to vesting conditions, bringing the total consideration to approximately $96 million (excluding expenses and other adjustments).

The acquisition is expected to close in CrowdStrike's fiscal third quarter of 2021, subject to customary closing conditions being met.

Zero Trust is a security model that assumes no user or device can be trusted by default, requiring strict verification for every access request. Conditional access technology grants or denies access based on real-time risk assessments, user identity, device health, and other factors. Integrating this technology allows CrowdStrike to provide more granular and dynamic security controls, crucial for protecting modern, distributed IT environments.