Darktrace to acquire Cado Security, enhancing AI-driven cloud cybersecurity solutions

Darktrace, a globally recognized leader in artificial intelligence (AI) for cybersecurity, has announced its proposed acquisition of Cado Security, a UK-based specialist in cloud investigation and response solutions. This strategic move underscores Darktrace’s commitment to addressing the increasing complexity of cyber threats in hybrid and multi-cloud environments.

The acquisition, subject to regulatory approval, is expected to finalize by February 2025. It is poised to strengthen Darktrace’s ActiveAI Security Platform™ with Cado’s advanced forensic investigation capabilities, enabling deeper insights into potential threats and vulnerabilities across diverse systems.

How This Acquisition Advances Cloud Cybersecurity Solutions

Cloud adoption has accelerated in recent years, with businesses increasingly relying on cloud-based systems to store data, run applications, and manage operations. This shift has also elevated cybersecurity challenges, as attackers exploit vulnerabilities in these environments.

Cado Security’s platform addresses this critical need by automating data capture, processing, and forensic analysis across cloud, container, serverless, and SaaS ecosystems. Its capabilities empower security teams to detect threats faster and add meaningful context to investigations. By integrating these technologies, Darktrace aims to deliver AI-driven cloud cybersecurity solutions that offer pre-emptive protection against evolving cyber risks.

Darktrace Chief Executive Officer Jill Popelka noted that the combination of Cado’s expertise with Darktrace’s proprietary AI would enable customers to operate securely across all areas of their business. She emphasized the importance of continuous innovation in maintaining cyber resilience in an increasingly complex threat landscape.

Strengthening Incident Response Automation in Cloud Security

Cado Security’s ability to automate incident response processes aligns seamlessly with Darktrace’s mission to reduce the operational burden on security teams. The integration will augment Darktrace’s Cyber AI Analyst™, which leverages machine learning to streamline investigations, prioritize incidents, and minimize alert fatigue.

Darktrace plans to invest in the growth of Cado’s existing products while enhancing its own ActiveAI Security Platform™. This move is expected to provide security teams with faster, more comprehensive threat detection and response tools. By addressing blind spots in incident response, the combined offering will provide end-to-end protection in the AI-driven cybersecurity domain.

Expertise and Leadership Behind Cado Security

Founded by James Campbell and Chris Doman, Cado Security has established itself as a leader in cloud forensics and investigation. Campbell, a former Director at PwC and intelligence officer at the Australian Signals Directorate, brings extensive experience in incident response. Doman, known for creating the ThreatCrowd intelligence platform, has been pivotal in building Cado’s innovative technology.

This acquisition not only enhances Darktrace’s technological capabilities but also adds a wealth of expertise from Cado’s leadership team. The London- and Bristol-based R&D teams will collaborate with Darktrace’s research hubs in Cambridge, UK, and The Hague, Netherlands, to drive further innovation in cloud cybersecurity solutions.

Darktrace’s Strategic Growth and Commitment to Innovation

This acquisition builds on a series of strategic milestones for Darktrace. The company launched Darktrace / CLOUD for AWS in 2023 and expanded the platform to Microsoft Azure in 2024. By continuously investing in cloud-native solutions, Darktrace has positioned itself as a leader in proactive cybersecurity.

The proposed acquisition of Cado Security reflects the growing demand for AI-driven solutions capable of addressing threats in complex digital ecosystems. According to Darktrace’s 2024 State of AI Cybersecurity Report, cloud security remains a top priority for organizations adopting AI to bolster their defenses. This trend underscores the need for innovative technologies that can safeguard cloud-based platforms and applications.

Cloud Cybersecurity Solutions: A Growing Market Need

The increasing reliance on hybrid and multi-cloud environments has created new challenges for businesses worldwide. Darktrace’s research highlights that cybercriminals often target cloud platforms as entry points for attacks. These findings emphasize the importance of robust incident response automation and AI-powered solutions to combat emerging threats.

Darktrace’s acquisition of Cado Security aligns with this market need, providing customers with advanced tools to detect, respond to, and mitigate risks in real time. By integrating Cado’s automation capabilities with its AI technology, Darktrace aims to redefine cybersecurity for the modern era.

Sentiment and Market Outlook for Darktrace

Since its acquisition by Thoma Bravo in October 2024, Darktrace has focused on expanding its research and development capabilities to stay ahead of the evolving cyber threat landscape. This strategic direction has bolstered investor confidence in the company’s long-term growth prospects.

The acquisition of Cado Security reinforces Darktrace’s position as a leader in AI-driven cybersecurity, with a strong emphasis on cloud security innovation. As the cybersecurity market continues to grow, Darktrace’s focus on proactive solutions is expected to resonate with businesses seeking advanced tools to protect their digital assets.