7 Nov 2014
Investcorp, a global provider and manager of alternative investment products, today announced that it has signed a definitive agreement for FishNet Security to join Accuvant, combining two leading providers of information security services and solutions. The transaction will bring together the complementary strengths of FishNet and Accuvant, allowing the new entity to provide a broader suite of services, more innovative solutions, greater expertise and expanded reach to innovate and meet customers’ complex and rapidly expanding global information security needs. Pending regulatory approvals, the transaction is expected to close in the first quarter of 2015, with Investcorp maintaining a minority equity interest in the new, combined company. Financial terms are not being disclosed.
“The increasingly sophisticated and targeted nature of cyber attacks has heightened demand for advanced protection against the information security threats that jeopardize organizations’ businesses and customers. 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 by bringing our organizations together we will be able to accelerate innovation and help customers to more adequately address information security concerns,” said Rich Fennessy, FishNet Security chief executive officer.
Upon the closing of the transaction, 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 than 1,400 employees focused on serving customers;
More than 650 highly skilled security professionals, 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 the leading security product manufacturers; and
60 offices, training and security operations locations across the United States and Canada.
“This transaction is a product of the increased need for cyber security solutions and Investcorp’s ability to identify companies in fast-growing industries with immense potential,” said Mohammed Al Shroogi, President Gulf Business, Investcorp. “We are very pleased to have supported FishNet Security’s impressive growth and performance alongside Rich Fennessy and the entire FishNet Security team. Since acquiring the company in 2012, FishNet Security has delivered strong organic growth and improved its profitability while continuously innovating its offerings to anticipate and address the complex challenges associated with cyber security. We believe the combination of FishNet Security and Accuvant will create substantial value for all the parties involved and we look forward to supporting the new company’s efforts to expand its capabilities, offerings and operations.”
Investcorp’s original investment in FishNet Security in 2012, and its joining with Accuvant, are the latest in a series of high growth investments Investcorp has completed, which also include Fleetmatics, Skrill and Berlin Packaging.
Combining Accuvant and FishNet Security will provide the combined company’s customer base with greater benefits through improved access to resources, services and solutions. Specifically the new, combined company will offer:
A broader suite of services: expanding insights, resources, supplier relationships, and scale to better service customers faced with the increasing velocity and severity of malicious cyber security attacks.
Smarter solutions: combining and focusing research and development investments to bring more effective and efficient solutions to customers.
Greater expertise: providing a deeper bench of information security professionals with diverse strategic and technical expertise.
Expanded reach: extending the geographic footprints in the U.S., enabling the new, combined company to provide enhanced services and support to its North American customers.
Upon closing of the transaction, Accuvant chief executive officer Dan Burns will become the chief executive officer of the new, combined company. FishNet Security chief executive officer Rich Fennessy will remain on board 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.