Endpoint Detection and Response (EDR) firm Cybereason and managed security services provider (MSSP) Trustwave announced plans to merge this week.

With SoftBank as the majority investor, the companies say the strategic consolidation expands both companies’ technologies, managed services, advisory solutions and threat intelligence capabilities to deliver managed XDR, offensive security, digital forensics and incident response.

Despite raising roughly $850 million with hopes of going public through an IPO at a valuation of nearly $5 billion just a few years ago, Cybereason struggled in the competitive endpoint security market and announced layoffs in 2022. While Cybereason has a formidable endpoint security offering, it particularly struggled to gain significant market share in the US in the category when up against competitors like CrowdStrike and SentinelOne, despite a partnership with Google announced in 2021.

Cybereason Chairman & CEO Eric Gan believes the merger could help its existing success in some international markets.

“Cybereason, with its strong presence in Japan, is particularly excited to offer our combined EDR and MDR solutions in this market, where we have already seen distinct success,” said Gan.

The companies say the merger will leverage Trustwave’s market presence in the Americas, United Kingdom, Australia, the Middle East, and the Public Sector, alongside Cybereason’s strong position in Japan and its significant foothold in Continental Europe. 

According to the announcement, the two companies will function independently but “collaborate strategically on value-added services and capabilities to expand market presence.”

The transaction is expected to close in early 2025, subject to customary closing conditions and regulatory approvals.