Layoffs loom as LogRhythm, Exabeam complete merger

BROOMFIELD — LogRhythm Inc., a computer data security company, has completed its merger with California-based cybersecurity firm Exabeam, and will lay off 80 workers in Broomfield. 

“LogRhythm Inc. has decided to reduce its workforce in connection with a recent corporate transaction. As a result, the Company is implementing permanent layoffs at its office located at 385 Interlocken Crescent, Broomfield, CO 80021 (the Broomfield Facility),” LogRhythm wrote in a Worker Adjustment and Retraining Notification Act notice sent this week to regulators at the Colorado Department of Labor and Employment. “The employment of 80 employees who either physically work at the Broomfield Facility, or who are remote but report up to the Broomfield Facility or receive assignments from the Broomfield Facility, will be involuntarily terminated.”

Layoffs will begin in September.

“The entire (Broomfield) facility will not be closed, but the Axon Operating Unit will experience a Plant Closing,” the WARN notice said. 

Axon is LogRhythm’s cloud-based security information and event management platform.

“It is our aim to be operationally efficient and retain as much talent as possible for the success of the company,” Exabeam spokesperson said in an email to BizWest on Wednesday afternoon. “We will not disclose specific details regarding headcount.”

The companies went public in May with plans for the merger, terms of which were not disclosed.

“The merger combines unparalleled technological innovation with reliable data to create an AI-driven security operations platform that delivers the most efficient and accurate security information and event management (SIEM) and user and entity behavior analytics (UEBA) solutions in the industry,” the companies said Wednesday in a news release. 

The combined company will use the Exabeam name and will be led by CEO Christopher O’Malley, who held that role with LogRhythm.

“We are on the brink of a revolutionary shift in cybersecurity. By merging cutting-edge, AI-driven technology from Exabeam with the unmatched data integrity of LogRhythm, we are setting a new, unparalleled standard for security operations,” O’Malley said in the release. “Together, our combined expertise, innovation velocity, and vision will propel AI-driven cybersecurity solutions to new heights.

Thoma Bravo, a Chicago-based private equity firm, bought a controlling stake in LogRhythm, which was formed in Boulder before moving its headquarters to Broomfield several years ago, in 2018. Terms of that deal were not disclosed. 

J.P. Morgan Securities LLC served as the financial adviser and Goodwin Procter LLP acted as legal adviser to Exabeam on the LogRhythm merger. Kirkland & Ellis LLP was LogRhythm’s legal adviser for the deal.