CrowdStrike exec refutes Action1 acquisition reports

This article was updated on 8/22/2024.

CrowdStrike and patch management vendor Action1 are at odds over reports of acquisition talks that apparently fell through between the two companies.

TechTarget Editorial received a tip on Aug. 8 from an anonymous source claiming to be an Action1 employee who said that CrowdStrike was interested in acquiring Action1 for $1 billion. The alleged employee shared an internal email from CEO and co-founder Alex Vovk stating, "In light of the rumors inside the company, I would like to confirm that CrowdStrike is interested in acquiring Action1 with an estimated transaction value close to one billion dollars."

The timing of CrowdStrike acquiring a patch management vendor would have been notable as the global IT outage last month resulted from a faulty CrowdStrike channel file update.

TechTarget could not independently verify the veracity of the employee's claims or the details in Vovk's email. Action1 confirmed the authenticity of Vovk's email to several media outlets, which reported that CrowdStrike was eyeing the company as a potential acquisition. In the wake of such media reports, Action1 on Aug. 20 published a press release stating an intention to "remain founder-led."

"Over the last year, Action1 has received multiple acquisition inquiries, including some from well-known industry players. The entire Action1 team is honored by this level of interest, as it validates our strategy to become a leader in patch management and a key player in the industry. We are deeply grateful to our incredible team and to the many IT professionals who have placed their trust in Action1," Action1 vice president of product strategy Peter Barnett wrote.

"After carefully evaluating various options, we concluded that remaining founder-led is the best path to achieving our vision. While turning down significant financial opportunities is emotionally hard, we believe that our future is far brighter by staying independent."

In a CSO report on Wednesday, Action1 president and co-founder Mike Walters said that "customer trust" was an issue that led his company to walk away from the potential deal, apparently alluding to the recent IT outage caused by a botched CrowdStrike channel file update. Walters also told CSO that Action1 customers expressed disappointment in the acquisition reports, which influenced his company's decision to remain independent.

CrowdStrike, however, refuted the reports that CrowdStrike made an acquisition offer to Action1. CrowdStrike vice president of corporate development Gur Talpaz wrote in a LinkedIn blog post on Wednesday that these reports stemmed from a single exploratory phone call and that "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 took Action1 to task for allegedly leaking the internal email to the media and for exaggerating the level of interest CrowdStrike had in the vendor.

"CrowdStrike had one, 45-minute group conversation following RSA [Conference] 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," Talpaz 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."

A CrowdStrike spokesperson told TechTarget Editorial that Talpaz's LinkedIn post "will stand on its own" and the company had no further comment.

TechTarget Editorial contacted Action1 for comment, but the company did not respond at press time.

UPDATE: Walters emailed TechTarget Editorial a LinkedIn post from Action1. "Regarding the post by Gur Talpaz, Action1 disagrees and feels it must now do so publicly. Otherwise, Action1 has no public comment at present while our lawyers are in discussions," the post read.

Alexander Culafi is a senior information security news writer and podcast host for TechTarget Editorial.