Denver, Colo. and Overland Park, Kan. – Nov. 5, 2014 – Accuvant and FishNet Security, two leading providers of information security services and solutions, today announced that they have signed a definitive agreement to join forces and create a new, combined company. This move brings together the complementary strengths of the two organizations, creating a new provider with a broader suite of services, smarter solutions, more expertise and expanded reach to innovate and meet customers’ complex and rapidly expanding global information security needs.
Blackstone private equity funds will maintain majority ownership in the combined company. Financial terms of the transaction are not being disclosed. However, current investors of both organizations, including existing management, the private equity firm Sverica International and FishNet Security’s corporate owner, Investcorp, are maintaining minority equity interests in the new, combined company. The transaction is expected to close in the first quarter of 2015 pending relevant regulatory approvals.
“The coming together of Accuvant and FishNet Security is entirely about growth and transformation – about joining two respected companies and continuing to evolve the new, combined entity to better meet our customers’ needs,” said Dan Burns, Accuvant chief executive officer. “The leadership of both companies realized that we had been trying to solve many of the same problems for our customers, but in slightly different ways. When we put the two companies together, we will add strength to our similarities and options with our diversity, creating more value for our customers. We are excited to bring Accuvant and FishNet Security together, and strongly believe this union represents an unprecedented opportunity for our collective companies, customers, employees and partners.”
“Attack vectors are changing, becoming more targeted and sophisticated, and there is a defined shortage of resources in the industry. As a result, organizations are left exposed to very real risks that can impact their businesses and customers,” said Rich Fennessy, FishNet Security chief executive officer. “Together, FishNet Security and Accuvant will be better positioned to provide holistic, high-value, and integrated security solutions that cover all aspects of cyber defense. We believe that we will be able to accelerate innovation and help customers to more adequately address information security concerns.”
The new, combined company will have depth, breadth, scale, financial resources, and the industry’s most talented people to research and solve specific or complex customer security problems, as well as those of the industry at large. It will bring together:
· More than1,400 total employees focused on serving customers;
· More than 650 highly skilled consultants and engineers, delivering a full suite of information security risk and compliance consulting, as well as managed security services and product services;
· Best practices and real-world experience gained from working with more than 10,000 customers of various sizes across multiple industries;
· Partnerships with all of the leading security product manufacturers; and
· 60 offices, training and security operations locations across the United States and Canada.
“The economic and reputational risks associated with successful cyber-attacks are real and require that all institutions focus on defending their most valued assets,” said Dave Johnson, senior managing director in Blackstone’s Private Equity Group. “Blackstone is very focused on maintaining a best practice position regarding cyber security – for our own networks as well as across our portfolio. We have been leveraging Accuvant’s extensive capabilities over the past several months and will look to the new, combined organization to expand the strategies that protect our organization. We believe this is a great move for everyone involved, and look forward to providing incremental investments that allow the new, combined company to continue to expand its capabilities, offerings and operations.”
The coming together of Accuvant and FishNet Security provides its combined customer base with greater benefits through improved access to resources, services and solutions. Specifically the new, combined company will offer:
· Broader suite of services: expanded insights, resources, supplier relationships, and scale to better service customers faced with the increasing velocity and severity of malicious cyber security attacks.
· Smarter solutions: combined and focused research and development investments to bring more effective and efficient solutions to customers.
· More expertise: a deeper bench of information security professionals with diverse strategic and technical expertise.
· Expanded reach: extended geographic footprints in the U.S., enabling the new, combined company to provide enhanced services and support to its North American customers
Upon the closing of the transaction, Accuvant chief executive officer Dan Burns will become the chief executive officer of the new, combined company. Once the transaction has closed, FishNet Security chief executive officer Rich Fennessy will remain onboard as an advisor to assist in the integration effort. The combined company’s management team is expected to draw upon the experienced group of leaders from both companies. The combined company’s name, marketing brand and corporate headquarters location are expected to be determined during the integration process.
Christina Richmond, program director, security services, IDC: “Today, information security threats are coming from the outside and the inside, and are aimed at stealing information as well as compromising infrastructure and operations. There are an ever-increasing number of solutions, making it difficult for companies to keep up with and understand the services and technologies that best help them protect their data, their customers and their companies. It is essential that specialized experts with extensive experience work together to solve the world’s information security concerns.”
Mark McLaughlin, president and chief executive officer, Palo Alto Networks: “Security concerns are top of mind and more than ever, enterprises demand a strong combination of a disruptive security platform and independent expertise in the market. Palo Alto Networks has a proven track record of working together with Accuvant and FishNet Security and we look forward to expanding this relationship in the future to deliver even better security expertise and value to our customers.”
Accuvant, a Blackstone (NYSE: BX) portfolio company, is a leading provider of information security services and solutions serving enterprise-class organizations across North America. The company offers a full suite of service capabilities to help businesses, governments and educational institutions define their security strategies, identify and remediate threats and risks, select and deploy the right technology, and achieve operational readiness to protect their organizations from malicious attack. Founded in 2002, Accuvant has been named to the Inc. 500|5000 list of fastest growing companies for the last eight consecutive years. The company is headquartered in Denver, Colo., with offices across the United States and Canada. Further information is available at www.accuvant.com, or connect with Accuvant on Twitter, Facebook and LinkedIn.
About FishNet Security
FishNet Security, an Investcorp portfolio company, is a leading provider of information security solutions, combining technology, services, support and training. Since 1996, the company has repeatedly been recognized for its rapid growth, high customer satisfaction and continuous business innovation. Today, FishNet Security has 29 regional offices, including nine training facilities, two product testing laboratories and two security operations centers that monitor and support customer networks. For more information, visit FishNet Security’s website at www.fishnetsecurity.com or connect with FishNet Security on Twitter, Facebook and LinkedIn.
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds, and multi asset class exposures falling outside of other funds’ mandates. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at June 30, 2014, Investcorp had $11.4 billion in total assets under management. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com