CrowdStrike to Acquire Identity Security Startup SGNL for $740 Million

CrowdStrike announced Thursday that it will acquire identity security startup SGNL in a deal valued at nearly $740 million, underscoring the company’s push to expand its platform amid a surge in AI-driven cyber threats.

The acquisition is expected to close in the first quarter of CrowdStrike’s fiscal 2027. Once completed, SGNL’s technology will be integrated into CrowdStrike’s flagship Falcon platform, enhancing customers’ ability to manage both human and AI identity access requests while monitoring real-time risk.

CEO George Kurtz said the deal significantly strengthens CrowdStrike’s position in the rapidly growing identity security market, which the company estimates reached $435 million by the end of its second fiscal quarter and represents one of today’s most exploited attack surfaces.

“This is a massive opportunity for our customers to better protect themselves — and for us to disrupt the identity market,” Kurtz said, noting that identity-based attacks have become more sophisticated as artificial intelligence lowers barriers for attackers.

The acquisition comes as enterprises reassess identity controls in response to increasingly automated threats. High-profile incidents over the past year — including attacks targeting Microsoft’s SharePoint ecosystem and disclosures of AI-assisted attacks — have highlighted how compromised credentials remain a primary vector for breaches.

Founded in 2021 and headquartered in Palo Alto, California, SGNL raised $30 million in early funding in February. Its investors include Cisco Investments and Microsoft’s venture fund. Co-founders Scott Kriz and Erik Gustavson previously built a startup acquired by Google in 2017 and later spent several years at the search giant.

The deal also reflects a broader consolidation trend across cybersecurity. Providers are racing to assemble end-to-end platforms as customers look to reduce tool sprawl and defend against AI-enabled threats. Recent large transactions include Palo Alto Networks’ $25 billion acquisition of CyberArk and Google’s $32 billion purchase of cloud security startup Wiz.

CrowdStrike itself has been an active acquirer, announcing deals in 2025 for AI agentic security platform Pangea and Spanish data startup Onum. Kurtz said the company’s strategy is focused on acquiring strong teams and modern technology rather than layering on legacy tools.

“Our goal is consolidation with better outcomes,” Kurtz said. “Fewer vendors, less complexity, lower cost — and stronger breach prevention.”