Atos to acquire Paladion, adding managed detection and response services to its MSS portfolio

June 25 2020
by Aaron Sherrill


European IT consulting company Atos has acquired Paladion, a US-based global provider of managed detection and response (MDR) services, to enhance its global cybersecurity services capabilities. Atos is adding MDR services to a growing portfolio of security services, which includes identity and access management, privileged access management, network and data encryption, analytics and monitoring, cloud and hybrid-cloud security, endpoint security and IoT security.

Snapshot Snapshot






Managed detection and response services

Deal value


Date announced

June 24, 2020

Closing date, expected

Q4 2020


None disclosed

The 451 Take

Atos' acquisition of Paladion is one of many recent transactions in the MDR space. Over the last several months, we have seen CyberProof acquire Necsia Cybersecurity, ReliaQuest acquire Threatcare, Fortinet acquire enSilo, Ernst & Young (EY) acquire ElevatedPrompt Solutions, and Sophos acquire Rook Security, to name a few. As enterprise IT ecosystems become more diverse and disparate, organizations are seeking help to prevent, detect and respond to attacks from multiple vectors. Companies like Atos – offering a broad portfolio of traditional managed security services along with advanced security services like managed detection and response – should have a competitive advantage over providers that only offer a limited catalog of services.

Deal details

The acquisition of Paladion is Atos' fifth transaction over the last 12 months, including the simultaneously announced plans to acquire ALIA Consulting, a digital consulting company specializing in the energy sector. The firm also announced that it plans to target more cybersecurity acquisitions, and expects to grow its revenue in the mid-term by between 5% and 7%.

Atos sees alignment with the strengths of Paladion's MDR platform and its own capabilities in artificial intelligence, and threat and risk-based analytics. The company is planning to leverage Paladion's cloud-native security technologies to support expansion strategies in its cybersecurity and cloud offerings. Atos believes that combining the scale and resources of its managed security services with Paladion's cloud-delivered MDR technology will enhance its global cybersecurity services capabilities, and accelerate its market presence in the competitive MDR space. The terms of the transaction, expected to close in Q4 2020, have not been disclosed.

Target profile

Founded as an information security consulting firm in Bangalore, India, in 2000, Paladion shifted its focus from consulting to managed security services in 2006. In 2014, Paladion raised over $9m in funding from Nadathur Holdings, enabling the company to reinvent its managed security services model and develop a full-featured security platform capable of delivering threat detection, hunting, intelligence and response.

Currently headquartered in Reston, Virginia, Paladion is led by CEO Rajat Mohanty. The company employs over 800 cybersecurity specialists around the world, and operates five global SOCs located in Reston, Dubai, Mumbai, Bangalore and Kuala Lumpur.

Although the company has had a substantial presence in EMEA and Asia, it has reported marked growth in the North American market in recent years. Paladion serves over 700 customers ranging from SMBs to large global firms, with the bulk of its customers coming from midsized organizations.

Acquirer profile

Headquartered in Bezons, France, IT services firm Atos touts 110,000 employees in 73 countries and annual revenue of €12bn. The company's portfolio of services is aimed at helping enterprises across all business sectors with their digital transformation needs. Atos' catalog of services spans cloud, big data and analytics, cybersecurity, high-performance computing, business applications, digital workplaces, automation, and IoT. With a global team of over 5,000 security specialists and a worldwide network of 14 security operation centers, Atos offers an extensive portfolio of advanced security products and solutions.


Enterprises are making significant investments in their cybersecurity programs. According to 451 Research's Information Security, Budgets and Outlook 2020 survey, 90% of organizations are increasing their security budgets by an average of 20% over the next 12 months. Those expectations may have been underestimated, at least for the short term, because the global pandemic is driving many enterprises to increase security spending to protect the explosion in remote workers. As a result, competition in the security services market is growing fiercely as service providers look to grab a share of a projected $15.8bn market that is expected to exceed $24.3bn by 2023.

The acquisition of Paladion enables Atos to enter the MDR space with an established and robust service offering. The move is key since it better positions the company's portfolio of services with many of its competitors that already offer MDR services, including Accenture, EY, Capgemini, Deloitte, BT, Booz Allen, Verizon, Tata Communications and IBM. With its push into MDR services, the company will likely see competition from a broader range of security service providers, including Arctic Wolf, eSentire, Critical Start, Expel, Rapid7, Cisco and Proficio.