A CrowdStrike executive has taken to LinkedIn to dismiss reports that the security software vendor was in talks to acquire patch management tool maker Action1.
In early August, reports by publications including CSOonline and CyberSecurity Dive referenced an internal email from Action1 CEO and co-founder Alex Vovk saying that CrowdStrike was interested in acquiring Action1 for close to $1 billion.
CrowdStrike initially responded obliquely to the story, saying, “In the current environment, misinformation has become increasingly prevalent. As a policy, we do not respond to rumors or speculation.”
But when Action1 put the story back in the spotlight this week, announcing it had decided to remain founder-led “despite receiving multiple acquisition inquiries over the past year, including from well-known industry players,” CrowdStrike’s reaction to the new report was more vigorous.
“This story is false,” Ross Lovern, partner at Kekst CNC, a global communications consultancy hired by CrowdStrike told CSOonline. Kekst CNC helps clients “communicate through complex transitions, manage strategic opportunities and crises, and enhance reputations,” according to its website.
Hours later, Gur Talpaz, VP for corporate development at CrowdStrike, took to LinkedIn to deny that a deal had ever been on the cards.
“In the M&A game, rumors are currency. We accept that, and my general response is to ignore them. But what I’ve seen over the past few weeks from a company called Action1 goes far beyond anything I’ve ever experienced in my career, and I feel compelled to set the record straight,” Talpaz wrote in a LinkedIn post.
“CrowdStrike had one, 45-minute group conversation following RSA with Action1. Not one single senior member of the CrowdStrike team was a part of this conversation — me included. Action1 signed no NDA. We did not receive a single diligence item of any kind and disengaged after a surface level conversation,” he wrote.
“Nearly three months later, false reports of an offer and process emerged in the press, driven by a ‘leaked’ email with outrageous claims, including a valuation that was never discussed and an M&A process that never happened. This behavior destroys trust and undermines the credibility of our industry,” Talpaz concluded.
His post was “liked” by CrowdStrike colleagues, including the company’s corporate communications leader.
Contacted by CSOonline for comment, Action1 president and co-founder Mike Walters replied, “I just saw this post on LinkedIn. Gur is misrepresenting facts. We are preparing a response, and I will answer your questions tomorrow.”