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Sqreen Acquisition

Sqreen Acquisition: Key Details, Impact, and What Comes Next

March 24, 2025

Datadog's acquisition of Sqreen marks a significant step in the application security landscape. By integrating Sqreen's advanced security features with Datadog's robust monitoring solutions, the deal aims to provide a comprehensive security strategy for modern distributed applications. This move underscores the growing importance of seamless, automated security measures in the industry.

What Is Sqreen?

Founded in 2015, Sqreen specializes in application security management, offering products such as threat detection, API security, and code-level vulnerability detection. Its unique selling points include real-time threat detection, comprehensive API security, and continuous monitoring for code-level vulnerabilities without traditional overhead. Sqreen's integrated platform provides end-to-end visibility and automated responses, making it a standout in the market for its ease of use and comprehensive security features.

Who Acquired Sqreen?

Datadog is a leading provider of monitoring and security platforms for cloud applications. The company offers a range of products including Infrastructure Monitoring, Application Performance Monitoring (APM), Log Management, and Security Monitoring. Datadog's comprehensive platform provides end-to-end visibility into the health and performance of cloud infrastructure, applications, and logs. Recognized as a leader in the Gartner Magic Quadrant for Observability Platforms, Datadog holds a strong market position and is trusted by thousands of customers worldwide.

When Was Sqreen Acquired?

Datadog announced its acquisition of Sqreen on April 12, 2021. This acquisition aligns with the growing trend of integrating security into the development and operations lifecycle, commonly referred to as DevSecOps. The timing reflects the increasing importance of cloud security as more organizations migrate to cloud-based infrastructures. This move also follows Datadog's earlier release of Cloud SIEM, indicating a strategic effort to enhance its security offerings in response to the rising demand for comprehensive security monitoring solutions.

Why Was Sqreen Acquired?

  • Market Expansion: The acquisition of Sqreen represents a strategic move for Datadog to expand its market presence in the application security domain. By integrating Sqreen's capabilities, Datadog aims to offer a more comprehensive security solution, thereby attracting a broader customer base and entering new market segments focused on application-level security.
  • Technology Integration: The integration of Sqreen's technology with Datadog's platform aims to create a unified monitoring and security solution. This includes combining Sqreen's Runtime Application Self-Protection (RASP) and In-App Web Application Firewall (WAF) capabilities with Datadog's observability tools to provide comprehensive security monitoring.
  • Competitive Advantage: By acquiring Sqreen, Datadog strengthens its competitive position in the market by offering a more robust and integrated security solution. This move is expected to attract more customers looking for a comprehensive DevSecOps platform, thereby enhancing Datadog's value proposition.

Acquisition Terms

  • Acquisition Price: The acquisition price was not publicly disclosed.
  • Payment Method: The payment method was not specified.
  • Key Conditions or Agreements: The transaction is subject to customary closing conditions, including receipt of required regulatory approvals. The acquisition is expected to close in Q2 2021.

Impact on Sqreen

The acquisition of Sqreen by Datadog has led to significant changes in operations and management. The Sqreen team has joined Datadog, integrating their expertise and technology into Datadog's existing framework. This operational shift aims to enhance Datadog's cloud security capabilities, particularly in application performance monitoring (APM) and security monitoring. The integration is expected to streamline processes, reduce the need for multiple agent deployments, and foster better collaboration between security engineers, developers, and site reliability engineers (SREs).

In terms of product offerings, the acquisition has bolstered Datadog's platform by incorporating Sqreen's advanced security features, such as Runtime Application Self-Protection (RASP) and In-App Web Application Firewall (WAF). This integration provides customers with a more comprehensive security solution, enhancing real-time threat detection and application security monitoring. Employee reactions have been positive, with Sqreen's CEO expressing excitement about the new opportunities. While direct customer reactions are not detailed, the enhanced security features and unified platform are expected to be well-received, offering improved security and ease of use.

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