Security Information & Event Management (SIEM) , Security Operations

New Logpoint CEO Mikkel Drucker Seeks Growth Via M&A, MSSPs

European SIEM provider Logpoint tapped the former chief executive of experience management firm Netigate as its next CEO and tasked him with growth through acquisitions.

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The Copenhagen, Denmark-based company said Mikkel Drucker will seek inorganic ways to expand Logpoint's platform capabilities through the integration of threat and risk data, catering specifically to the midmarket. Drucker started at Logpoint on May 20 after spending more than three years as Netigate's CEO. He will replace Jesper Zerlang, who left a year after Summa Equity took a majority stake in the company.

"Our foundational TDIR [threat detection, investigation and response] is great," Logpoint CTO Christian Have told Information Security Media Group. "But the moment it goes beyond that, there are still things on that M&A road map that are interesting for us. Combining or fusing threat and risk data is something that we're not seeing done toward the midmarket, and that's a big part of where we're going."

Drucker said Summa Equity has tasked him with profitable growth, which entails driving top-line sales, investing in go-to-market strategies, expanding the partner channels, and pursuing acquisitions that can either enhance Logpoint's value proposition or expand its client base. Optimizing the services of MDR providers and MSSPs will allow Logpoint to boost growth and expand its customer base more effectively (see: Summa Equity Buys Majority Stake in Logpoint to Bolster M&A).

Logpoint's Unique Position in Europe

Drucker said Logpoint's compliance and certification credentials appeal to European organizations that prioritize local expertise and adherence to European Union-specific regulations. Specifically, Drucker said, Logpoint's European headquarters and compliance with EU-specific certifications give it an edge in RFP and customer trust within Europe, especially in countries such as Germany.

"Logpoint is right at the center of cybersecurity in Europe, built for purpose following European legislation and the high security requirements of NATO," Drucker told ISMG.

Drucker also said Logpoint's new focus addresses the unique needs of midmarket organizations and the MSSPs that serve them and distinguishes the company from competitors targeting larger, more sophisticated customers. The company expects to significantly increase its revenue through partner channels in the coming years, according to Drucker.

MSSPs operate on economies of scale, which Drucker said requires analytics and user experience flows that enable them to deliver services effectively. MSSPs and MDR providers currently contribute 25% of Logpoint's revenue, and Drucker said these channels enable the company to grow faster and reduce the burden on its direct support staff.

Room to Grow Via M&A

The LogRhythm-Exabeam merger and Palo Alto Networks' purchase of IBM's QRadar SaaS business have informed Logpoint's M&A strategy, Drucker said, with a focus on being a platform player rather than a single-purpose provider. Integrating more capabilities into the Logpoint platform will allow the company to better serve midmarket clients seeking security outcomes rather than individual products, he said.

"We have much higher ambitions to grow than what we've seen feasible just doing organically. Acquisitions enable us to compete faster," Drucker said. "We definitely are of the belief that becoming more of a platform player is an attractive position to be in because you become a more attractive supplier and you become a more attractive partner for you and for your channel."

Going forward, Drucker said, Logpoint wants to maintain its current growth rate of twice the industry average while enhancing profitability through efficient commercial setups and resource allocation. Logpoint in 2022 grew its SIEM business by 36.4% to $112.5 million, according to IDC. Despite that growth, the company was only the ninth-largest in the SIEM market, with market share of just 2.2%.

"We have the good fortune of being in multiple countries across the world, which means that we can leverage different types of talent and different types of cost bases to do that," Drucker said.