CrowdStrike announced plans on Tuesday to acquire two companies, Fiddler and Dreadnode, to expand the security capabilities of its Falcon platform for artificial intelligence agents. The moves are designed to address the growing need for oversight and testing as enterprises integrate AI into their daily operations.
The company signed definitive agreements for both acquisitions. According to a report from The Wall Street Journal, CrowdStrike will pay approximately $400 million for Fiddler and about $95 million for Dreadnode. The combined value of the deals is roughly $495 million.
Fiddler Adds AI Observability to Falcon Platform
Fiddler will bring AI observability and behavioral monitoring tools to CrowdStrike. The technology is intended to help organizations understand how AI agents behave before and after deployment. This includes tracking whether agents act as intended and explaining the reasoning behind their decisions.
“AI observability provides a lens into agent behavior before and after they ship,” CrowdStrike President Michael Sentonas said in a blog post. “AI explainability shows why agents made their decisions and where their actions may have gone awry. Fiddler delivers both.”
The acquisition aims to give enterprises a clearer view of AI agent activities. CrowdStrike stated that the Fiddler technology will become part of the Falcon platform, which the company describes as a system designed to secure agentic enterprises.
Dreadnode Provides Automated Security Testing
The second acquisition, Dreadnode, focuses on automated security testing for AI systems. The company provides tools that allow businesses to validate the security of AI models before they are released into production. CrowdStrike plans to integrate these testing capabilities into the Falcon platform.
“Businesses are integrating AI models, agents and applications into daily operations faster than security teams can validate them,” Sentonas said. “Traditional software security testing isn’t built to capture the risks these technologies can present. With Dreadnode, CrowdStrike will extend the Falcon platform to give enterprises a fast, repeatable way to test their AI systems before they’re deployed.”
The goal is to enable customers to deploy AI agents with greater confidence. By adding automated testing to its existing security infrastructure, CrowdStrike hopes to help organizations manage the unique risks associated with AI integration.
Deal Timeline and Strategic Context
CrowdStrike expects both transactions to close during the fourth quarter of fiscal year 2027. The closings are subject to customary conditions. The company has been actively expanding its AI security offerings in recent months. In June, CrowdStrike introduced a new security control plane for AI agents called Continuous Identity for AI.
This control plane provides continuous, risk-aware enforcement. It authorizes every agent action based on ownership, caller identity, and real-time risk assessments. The new acquisitions build on this foundation by adding deeper visibility and pre-deployment testing capabilities.
The deals reflect a broader industry trend toward securing AI systems as they become more prevalent in business environments. CrowdStrike is positioning its Falcon platform to handle the specific security challenges posed by autonomous AI agents.
Source: PYMNTS
