Combination Creates Global Security Powerhouse
BASKING RIDGE, N.J. - Verizon Business today announced a definitive agreement under which it will acquire Cybertrust, a privately held provider of global information security services. One Equity Partners, LLC, the private equity arm of JPMorgan Chase & Co., is currently the majority shareholder in the Company.
The combination will make Verizon Business the leading provider of managed information security services to large-business and government customers worldwide. By combining Cybertrust’s global presence and customer base, focused security expertise and professional services with Verizon Business' “cloud-to-core” security portfolio, global IP network and financial strength, the acquisition creates a powerful and unique player that will redefine the global security landscape.
The companies expect to close the transaction in 60 to 90 days.
Cybertrust, an information security firm with 800 employees and operations in 30 locations across the Americas, Europe, the Middle East, and the Asia-Pacific region, is a global leader in securing critical data, protecting identities and helping its customers demonstrate ongoing compliance. Services include identity management, managed security services, vulnerability/threat management, security certification programs and a full range of professional services including enterprise-wide quantified risk analysis, individual application assessments, and forensics and incident response services.
"Security is a top concern for corporate CIOs worldwide, and this transaction demonstrates Verizon Business' focus on and commitment to providing world-class security solutions," said John Killian, president of Verizon Business. "As the world continues to move to IP, this combination creates an essential engine for protecting our customers' operations end-to-end.
"It will also enable Verizon Business to accelerate its creation and deployment of world-class security solutions to meet our customers' increasing need for comprehensive security solutions that are available globally."
John Becker, chief executive officer, Cybertrust, said, "Joining with Verizon Business creates a capability that provides unmatched security expertise and extensive global reach that enables organizations to proactively manage risk and strengthen their protection of critical information assets. This combination will allow us to deliver a new generation of innovative security services that are aligned with an organization’s business needs at all levels."
According to industry analyst firm Frost & Sullivan, the managed security services market is growing exponentially and is projected to exceed $6 billion by 2011.
Counse Broders, senior research director at global analyst firm Current Analysis, said: "The security market has seen its share of mergers. This combination, though, will be very beneficial to Verizon Business, Cybertrust, and customers of both, and thrusts Verizon Business squarely onto the global security stage in a positive way. In short, it’s a competitive coup."
In addition to enhancing Verizon Business' global security services, Cybertrust offers a proven identity management suite, as well as Security Operation Centers in Europe, the Middle East, Africa and Asia-Pacific for a true "follow the sun" approach to security operations. Additionally, Verizon Business will acquire ICSA Labs, an independent division of Cybertrust, which is considered the gold standard of security product certification, and which has tested and certified 95% of the installed security products on the market today.
Cybertrust's Identity Management unit gives Verizon Business a strong new capability to help its customers efficiently manage user identities across multiple systems and applications. Through this group, Verizon Business will offer a full range of solutions for governments and enterprises to manage electronic identities that enable authentication management, information protection, and secure access to resources across enterprise systems.
Verizon Business currently offers a comprehensive portfolio of managed and professional security services spanning Verizon's Internet "cloud" network to the core infrastructure at the business organization's premises. This suite of global services delivers advanced threat intelligence and flexible security management, enabling business and government customers to better manage security risks and protect critical assets.