US InteliSecure hails deal for ace Pentura
Security MSP predicts more global consolidation in security market after deal for UK player
US managed security service provider (MSSP) InteliSecure has predicted more global consolidation in the security market following the completion of a deal for UK-based Pentura.
Founded in 2002, Pentura began life as a traditional security reseller and has moved into a consultancy-focused services player with a secure operations centre (SOC) in Reading. The firm is focused on data-leakage prevention and penetration testing.
This is not the first time a UK security player has been snapped up by a North American player, with Sysec being taken over by Herjavec Group in February.
Rob Eggebrecht, InteliSecure's CEO, told CRN he envisages more cross-border deals to follow in the security market.
"The managed security services space is one of the fastest-growing spaces inside security," he said. "More corporations don't want to build security teams so companies like Singtel just bought Trustwave, NTT Com Security bought Integralis; that's over $1bn in MSPs. I think the trend is going to be more consolidation."
Eggebrecht said that the reason why InteliSecure decided to move into the UK market was due to demand from its international customer base, which wanted it to have a European location.
"Customers need to have feet on the street," he said. "There is a significant privacy compliancy law in the EU, so when you are managing peoples' systems, having a SOC in the EU is pretty much paramount at this point. People don't want to see their data move past the EU."
Danny White, sales director at Pentura, said the firm's growth had made it an obvious target for a takeover.
"Our prime focus was around the fact there is a big consolidation opportunity in the UK. The UK is made up of a lot of small boutique consultancy companies, and we have grown to a size when we had come to the attention of a number of the bigger players.
"We had been talking to some VC backers about Pentura becoming a platform company and making some acquisitions ourselves. We were also approached by a Nordic integrator, but they just didn't have the right fit for us. Then we took a call from the guys at InteliSecure, I think we were introduced through Symantec, and the fit in terms of the strategy mirrored what we do in the UK."
White said following the deal - for an undisclosed amount - Pentura is going to continue its current strategy but will be looking to move to a bigger SOC base by 2016 which will facilitate around 100 employees.
When asked if there will be any redundancies following the deal, Eggebrecht said there wouldn't and, if anything, the Pentura team will be increased. He added it was "yet to be determined" if the Pentura brand would remain.
For its last financial year Pentura's revenues were £5.8m. After the deal, InteliSecure expects its revenues to reach $35m for 2015. Eggebrecht said he wants the enlarged group to reach $100m in sales by 2018 with operations in Europe, the US and Asia.