CrowdStrike has announced a major expansion of its cybersecurity capabilities with the acquisition of identity security startup SGNL in a deal valued at $740 million. The move underscores the company’s growing focus on combating AI-powered cyber threats, particularly those that exploit user identities rather than traditional system vulnerabilities.
The acquisition, revealed on January 8, positions CrowdStrike to strengthen its identity protection tools as businesses increasingly rely on AI agents and autonomous systems.
Why CrowdStrike Is Buying SGNL
Cybercriminals are changing tactics. Instead of “breaking in,” attackers are increasingly logging in using stolen or misused credentials. CrowdStrike CEO George Kurtz explained that identity abuse has become one of the most critical threat vectors in today’s security landscape.
SGNL’s technology addresses this challenge by offering continuous identity security, which constantly evaluates whether users, machines, or AI agents should have access to systems in real time.
This approach is particularly important as organizations grant broader permissions to AI tools, increasing the risk of unauthorized access if identities are compromised.
What SGNL Brings to CrowdStrike’s Platform
Founded in 2021 by Scott Kriz and Erik Gustavson, SGNL provides a modern identity security platform that manages access dynamically across:
- Cloud environments
- Enterprise systems
- Human users
- Machine and AI identities
Its “continuous identity” model ensures access decisions are not static but adapt instantly based on behavior, risk, and context.
CrowdStrike plans to integrate SGNL’s capabilities into its Falcon platform, giving customers stronger protection against identity-based attacks without adding complexity.
Strengthening CrowdStrike’s Identity Security Business
This is not CrowdStrike’s first move into identity security. The company entered the space in 2020 with its acquisition of Preempt Security. Since then, its identity protection business has grown rapidly.
As of the second quarter of fiscal 2026, CrowdStrike’s identity segment generated more than $435 million in annual recurring revenue, highlighting strong demand for identity-focused cybersecurity solutions.
According to Kurtz, SGNL adds an “identity fabric” that enhances CrowdStrike’s existing offerings rather than replacing them.
No Layoffs, Seamless Integration Planned
CrowdStrike confirmed that SGNL’s team will fully join the company, with no layoffs planned. The acquisition is focused on both talent and technology.
The deal is expected to close in the first quarter of fiscal 2027, with the purchase price paid mostly in cash and a portion in stock subject to vesting conditions.
CrowdStrike also noted that integration into the Falcon platform should be relatively easy for existing customers, minimizing disruption.
AI at the Center of CrowdStrike’s Strategy
The acquisition aligns with CrowdStrike’s broader investment strategy, which heavily emphasizes AI-driven security operations.
The company is already deploying autonomous AI agents within its security operations center, reducing complex threat response tasks from days to hours. SGNL’s identity controls will further enhance this automation by ensuring AI systems themselves do not become security risks.
What This Means for the Cybersecurity Industry
As AI adoption accelerates, identity security is becoming one of the most critical battlegrounds in cybersecurity. CrowdStrike’s acquisition of SGNL signals a clear shift toward real-time, identity-first protection models designed for an AI-driven world.
For enterprises, the deal promises stronger defenses against modern attacks where stolen credentials not malware are the primary weapon.
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