BROOMFIELD – Level 3 Communications (NYSE: LVLT) on Wednesday announced the acquisition of Los Angeles-based cybersecurity firm Black Lotus.
Terms of the all-cash deal were not disclosed because the purchase is not expected to be material to Broomfield-based Level 3’s financials.
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Black Lotus, which has about 20 employees and annual revenue of less than $10 million, provides Distributed Denial of Service (DDoS) mitigation services. For instance, the firm can help companies guard against cyberattacks where nefarious entities might try to flood the bandwidth or resources of their website and crash their site with an overload of traffic.
Level 3, a Fortune 500 provider of telecommunications services, launched its own DDoS product earlier this year. The pickup of Black Lotus helps bolster that product with both added technology and the talent that Black Lotus employees bring to the table. Most Black Lotus employees are expected to join Level 3 and remain, at least in the short term, in Los Angeles. Black Lotus will take on Level 3’s branding.
“Black Lotus’ proxy and behavioral technologies, combined with their experienced team of DDoS experts, perfectly complements Level 3’s DDoS mitigation and threat intelligence capabilities,” Chris Richter, senior vice president of managed security services for Level 3, said in a prepared statement. “With this acquisition, Level 3 continues its commitment of investing in a comprehensive portfolio of services that enhance the growth, efficiency and security of our customers’ operations, helping enterprises combat the cybersecurity challenges they face every day.”
Level 3’s share price rose nearly 1 percent Wednesday to close at $53.13.