Cybersecurity Acquisitions in 2016

Coalfire has acquired Veris Group, a provider of cyber risk advisory, compliance assessment, technical testing, and security engineering services, to broaden its cybersecurity capabilities. The deal was funded in part by new equity investments from The Carlyle Group and affiliates of The Chertoff Group (with Baird Capital noted as a partner), positioning the combined business as one of the largest providers of cyber risk, FedRAMP, and payment-card assessment services.

SuperCom (NASDAQ: SPCB) acquired Safend Ltd., an endpoint data protection and encryption software provider headquartered in Tel Aviv, Israel. The deal, announced March 3, 2016, brings Safend's DLP/encryption technology and customer base (3,000 customers; >3 million license seats) into SuperCom to expand its cyber and data protection capabilities; Safend had previously been a subsidiary of Wave Systems Corp.

Nehemiah Security, a Tysons Corner–based cybersecurity solutions provider, acquired anomaly-detection vendor Triumfant and its AtomicEye endpoint platform. The acquisition will integrate AtomicEye into Nehemiah's product portfolio to expand its advanced anomaly detection, automated remediation and endpoint visibility capabilities for enterprise and government customers.

Providence Strategic Growth (PSG), the growth equity affiliate of Providence Equity Partners, has acquired Untangle Inc. and provided growth capital to accelerate the company's product, channel, and go-to-market initiatives in the unified threat management/next-generation firewall market. Untangle, headquartered in San Jose, California, will be led by newly appointed CEO Scott Devens as it pursues market share expansion in the SMB and below-enterprise segments.

WatchGuard Technologies has acquired the HawkEye G threat detection and response technology from Hexis Cyber Solutions, a division of The KEYW Holding Corporation. The technology will be integrated into WatchGuard's network security and MSSP enablement platform to extend visibility and automated response from the network perimeter to endpoints for small and midsize organizations and distributed enterprises.

Alert Logic has acquired Austin-based Click Security to bolster its cloud security analytics, threat detection and incident analysis capabilities. Alert Logic plans to integrate Click Security's employees and technology into its Cloud Defender Security-as-a-Service platform to enhance detection and managed security offerings.

Jacobs Engineering Group Inc. acquired The Van Dyke Technology Group, Inc., a 180-person cybersecurity firm based in Maryland; terms were not disclosed. The acquisition expands Jacobs' cybersecurity capabilities—particularly identity and access management and threat mitigation—to better serve public sector clients (including the U.S. Intelligence Community and Department of Defense) and private-sector critical infrastructure customers.

IBM Security completed the acquisition of Resilient Systems Inc., a provider of incident response software and orchestration technology, integrating the company into IBM Security to expand its incident response capabilities. Financial terms were not disclosed; Resilient's Incident Response Platform (IRP) will be used to help customers automate and coordinate responses to cyber incidents globally.

Infoblox has agreed to acquire Tacoma-based cybersecurity firm IID for $45 million to expand its network security and threat-intelligence capabilities. IID co-founders Lars Harvey and Rod Rasmussen will join Infoblox's management team, most of IID's ~65 employees and the Tacoma office will be retained, and IID's customers (including Microsoft and the U.S. Department of the Treasury) will continue to be supported.

FireEye acquired cyber threat intelligence firm iSIGHT Partners in a deal valued at up to $275 million, paying approximately $200 million in cash with up to $75 million in performance-based incentives. The acquisition (closed January 14, 2016) adds subscription-based intelligence capabilities and personnel (roughly 350 staff) to FireEye to expand its threat intelligence offerings and create cross-sell opportunities across industry verticals and government customers.

Cyber Risk Management, LLC (CRM) has acquired APTEC, LLC, a Bethesda-based provider of Identity Governance and Access Management (IAM) services. APTEC will operate as a wholly owned subsidiary of CRM, expanding CRM's cybersecurity and IAM capabilities for its Fortune 1000 and government clients; financial terms were not disclosed.