Mergers and Acquisitions, Mergers and Acquisitions, Networking

Barracuda Networks Acquires Sookasa


Barracuda Networks has acquired Sookasa, ChannelE2E has learned. Sookasa is a cloud access security broker (CASB). The company's encryption and auditing capabilities can protect Box, Dropbox, Google Drive and other SaaS-oriented applications.

Sookasa is "dedicated to the idea that professionals should be able to enjoy all the convenience of the cloud with all the confidence of knowing their files are secure and compliant."

Read between the lines and the deal could trigger partnerships or competition between Barracuda/Sookasa and channel-centric file sync and sharing services like Autotask Workplace, Datto Drive (new to the market; exclusive details here) and eFolder Anchor, ChannelE2E believes.

The big question: Will Barracuda connect the dots between Sookasa and Intronis MSP Solutions by Barracuda. As part of a business transformation push, Barracuda acquired Intronis in 2015 to push deeper into the MSP channel. Intronis offers cloud-based backup and recently introduced on-premises appliances. MSPs earn recurring revenues selling Intronis solutions to small and midsize business customers.

Sookasa has the beginnings of a channel partner program, but the startup's partner experience appears to be limited.

Barracuda Buys Sookasa: Deal Terms

Asaf Cidon
Asaf Cidon

Barracuda is paying $250,001 plus 10,000 shares of the Company’s common stock, which includes the repayment of certain indebtedness of Sookasa, according to an SEC filing. ChannelE2E has not tracked down the deal's overall value based on those variables. We've reached out to Barracuda and Sookasa representatives for additional details.

The deal requires at least 85 percent of Sookasa's key employees to join Barracuda, according to the filing. Those key employees include Asaf Cidon, Lior Gavish, Ali Ayoub, Kartik Thapar, Barak Srour, Alon Regev, Itay Bleier, Marco Schweighauser and Nadezhda Korshu. Many of the key employees are also listed here.

It looks like CTO and Co-founder Israel Cidon (Asaf's father) is not on the required talent retention list, though ChannelE2E has not independently confirmed that detail.

Barracuda: Buyer, Not Seller?

Barracuda's buyout of Sookasa could also quiet down recent rumors that Barracuda itself is up for sale. Those rumors surfaced earlier this year after Wall Street expressed concerns about the company's overall growth rate. ChannelE2E has not heard any recent rumors about a potential company sale.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.