Leidos Acquires Kudu Dynamics for Cybersecurity Expansion

WASHINGTON — Leidos, a defense and information technology company, announced today that it acquired Kudu Dynamics, a cybersecurity and networks firm, for $300 million. This move aims to strengthen its AI-enabled offensive cyber capabilities.

Roy Stevens, president of Leidos’ National Security Sector, told Breaking Defense that the company has relied on artificial intelligence for “a long time.” He emphasized that combining Leidos’ expertise with Kudu’s proficiency in vulnerability research creates a powerful partnership.

“Their capabilities are stronger,” Stevens said regarding Kudu’s ability to find weaknesses in adversaries. “You take that capability and our AI capability, and you merge them together, and now you get what you want in an acquisition — the one plus one equals four.”

Stevens noted that while developing an AI-enabled cyber offensive capability independently could have been cheaper, collaborating with Kudu allows for faster development of these capabilities. “This acquisition moves us about 18 months forward on what we could have accomplished with our own investment,” he explained.

He added that the synergy between both companies’ AI and Kudu’s strengths will expedite the process of infiltrating adversarial networks. “Exploits traditionally take a long time to develop,” Stevens said. “AI allows us to quickly change variables and automate the process.”

The acquisition coincides with growing calls from lawmakers for enhanced offensive cyber capabilities. This need is reflected in the recent $150 billion defense spending proposal from the House and Senate Armed Services Committees, which includes $1 billion allocated for offensive cyber operations in the Indo-Pacific Command.

Ashley Manning, the defense secretary’s chief cyber advisor, previously stated the Pentagon is utilizing offensive cyber capabilities to improve security and combat transnational crime.

However, Stevens clarified that the timing of the acquisition was not influenced by the current political climate but was the result of a year-long strategy assessment. “It’s more about where the state of warfighting is going,” he said.

The acquisition of Kudu, which has about 170 employees and was founded in 2013, represents Leidos’ first acquisition in over two years. Kudu, based in Chantilly, Virginia, has previously collaborated with the Defense Advanced Research Projects Agency and developed software for the U.S. Air Force.

“We’re excited to deliver the next level of capabilities to our customers as we integrate Kudu’s innovative cyber solutions with the resources and expertise of Leidos,” said Kudu Dynamics Founder and CEO Mike Frantzen.