Cyber security firm F-Secure announced that it has acquired UK-based Digital Assurance, a consulting firm that provides information security assessments to governments and clients in the financial, petrochemical, retail, communication, and defense industries. Digital Assurance will be part of F-Secure's Cyber Security Service business unit and is not expected to have a material impact on F-Secure's financial outlook for 2017. Deal terms were not disclosed.
ECS Federal LLC announced that it has acquired InfoReliance, a provider of cybersecurity, cloud computing, software engineering solutions and managed services to government clients. InfoReliance is projected to add $150 million of revenue and expand ECS's agile software delivery capability supporting the Navy, USMC, USPS, FBI, the Intelligence Community and DOL. Kipps DeSanto was the financial advisor to InfoReliance. Deal terms were not disclosed.
Buchanan & Edwards Inc. announced that it has acquired The Reports and Requirements Company (R2C) LLC, a provider of national security consulting services specializing in cyber intelligence, intelligence collection, training support, and data governance and analysis. R2C will continue as a wholly-owned subsidiary of Buchanan & Edwards. Deal terms were not disclosed.
Orion announced that it has acquired New York-based Structured Network Solutions Inc. (SNS), a provider of design, directory authentication services, IT security policy, design strategies, and storage solutions to government, non-governmental organizations, and not-for-profits. Orion is a portfolio company of DC-based private equity firm Potomac Equity Partners. Deal terms were not disclosed.
The KeyW Holding Corporation announced that it has agreed to acquire Sotera Defense Solutions in an all-cash deal worth approximately $235 million, including an expected $46 million net present value related to acquired net operating loss carryforwards. Sotera is projected to generate $225 million in revenue and $20 million in adjusted EBITDA in 2017. The deal will nearly double KeyW with projected combined revenues of approximately $535 million in 2017 and yield approximately $7 million of cost synergies within 12 to 18 months. KeyW expects the deal to be immediately accretive to 2017 adjusted EPS.
Owned by Ares Management and with over 1,100 employees (80 percent have Top Secret clearance and above), Sotera provides enterprise IT, cybersecurity, data fusion and analytics, intelligence analysis, and C5ISR solutions to the Federal Government and Intelligence Community. The deal will bring KeyW more than 12 prime IDIQ's and GWAC contracts, as well as key customers including FBI, DHS, and Army Intelligence.
RBC Capital Markets and Guggenheim Securities are serving as financial advisors to KeyW. Macquarie Capital and Sagent Advisors are serving as financial advisors to Ares Management and Sotera. The deal is expected to close in the second quarter of 2017.
Accenture announced that it has agreed to acquire the federal government services business of Endgame Inc., a provider of endpoint detection and response (EDR) cybersecurity software solutions. The federal services business provides government clients with services including cyber defense, hunt-as-a-service, red teaming and cyber operations. As part of the transaction, Accenture and Endgame have entered into an alliance where Accenture will resell Endgame's EDR platform. Deal terms were not disclosed.
It appears that Accenture is serious about bulking up its cybersecurity capabilities as this acquisition is one of several investments the company has made in cybersecurity over the past few months, including the acquisition of Defense Point Security LLC and its announcement today that it will acquire iDefense Security Intelligence Services from Verisign.
Enlightenment Capital announced that it has made an investment in Telos Corporation, a provider of cyber security solutions and services to government, military, intelligence, and commercial clients. Enlightenment Capital is a DC-based private equity firm focused in the aerospace, defense, and government sectors. Deal terms were not disclosed.
LLR Partners announced that it has acquired BluVector from Northrop Grumman. BluVector provides a cyber threat detection and hunting platform that defends enterprises against security threats by leveraging its patented machine learning technology and artifical intelligence. BluVector has an installed base of customers including Fortune 1000 companies and public sector agencies. While deal terms were not disclosed, LLR has commited $50 million to BluVector to support future acquisitions and growth plans.
MacAulay-Brown Inc. (MacB) announced that it has acquired Enlighten IT Consulting (EITC), a provider of secure cloud engineering, big data analytics, and software solutions in the Defense, Intelligence, and Commercial markets. EITC's customers include US Army Cyber Command, DISA, and US Cyber Command. The company's offering include its Rapid Analytic Deployment and Management Framework, network operations monitoring, cyber threat detection and mitigation, and insider threat identification.
EITC will continue to operate as a wholly-owned subsidiary of MacB. Deal tearms were not disclosed. Bluestone Capital Partners served as the financial advisor to EITC.
Cybersecurity firm Nehemiah Security announced that it has acquired Siege Technologies, a provider of offensive and defensive cybersecurity solutions and services to clients in various markets including software, insurance, entertainment, and government. An example of Siege's capabilities is its threat quantification engine which replicates a network configuration within minutes and mathematically predicts the effects of offensive and defensive cyber operations. Siege Technologies is Nehemiah's fourth cybersecurity-focused acquisition since 2015. Deal terms were not disclosed.
We provide you with the latest news on acquisitions in the Defense and Government markets. Make sure to subscribe to our weekly deal updates: