Databricks to buy Panther Labs in cybersecurity expansion

• Databricks agreed to acquire cybersecurity startup Panther Labs for an undisclosed sum.
• The purchase marks the third security-focused acquisition for the private data analytics firm.
• The deal aims to boost Databricks' competition against industry incumbents like CrowdStrike and Cisco.

U.S. data analytics provider Databricks announced an agreement on Tuesday to purchase cybersecurity startup Panther Labs.

The transaction represents the third security acquisition for Databricks as it expands its enterprise offerings.

Databricks declined to disclose the financial terms of the agreement.

The acquisition aims to help the company compete with security management incumbents like CrowdStrike (NASDAQ:CRWD) and Cisco's (NASDAQ:CSCO) Splunk.

Panther Labs was previously valued at $1.4 billion after raising $120 million in a 2021 funding round.

The startup consolidates security data sources into a unified platform.

This structure allows automated AI programs, known as agents, to identify and mitigate digital threats.

Databricks Chief Executive Officer Ali Ghodsi stated that artificial intelligence has shortened the time attackers need to exploit software flaws.

Ghodsi told Reuters that traditional methods of managing security alerts are no longer effective.

The CEO noted that organizations must use automated defenses to counter AI-driven cyber attacks.