MSSP giant Optiv to shutter UK operation - sources

Optiv launched in the UK last year but is rumoured to be pulling out of the market

US cybersecurity giant Optiv is set to shut down its UK operation less than two years after crossing the Atlantic, sources have told CRN.

Multiple channel insiders said that Optiv informed its UK staff of the decision around a month ago, before confirming plans at the start of this week.

CRN has contacted Optiv for comment.

One source said that all of the MSSPs UK staff, thought to be around 20, will be losing their jobs - with "a couple" staying on to tidy up any outstanding transactions.

A third source told CRN that, while they had not heard the news, they were not surprised because Optiv is rumoured to be struggling in the US, where it is a $2bn-plus revenue operation.

He said that the firm had made a mistake by not acquiring the likes of Securedata and Securelink, both of which have huge European reach and were up for sale.

However Optiv's CMO recently told CRN that the pair were not worth the valuations placed on them.

Optiv was formed out of a merger of US MSSPs Fishnet and Accuvant, with former Integralis CEO Simon Church brought in to head up the European expansion.

It entered the UK in bold fashion at the start of 2018, harbouring ambitions to replicate the scale of the former Integralis business, which was acquired by NTT.

Speaking to CRN when he took the role, Church said that the business was 10 times larger than its nearest North American rivals.

But sources told us that Optiv is rumoured to be having difficulties in the US, which is one of the factors in the decision to cut costs and pull out of the UK.

He added that an Optiv employee had told him that a large portion of the business' deals had been driven out the US, with companies that are already Optiv customers, rather than fresh wins.

Infinigate CEO Klaus Schlichtherle told CRN that he was aware of the UK shuttering, claiming it can be hard for US cybersecurity businesses to hit the ground running.

"It's always a difficult thing to come from the US and get into a resale or distribution business in Europe, particularly in areas where it's tough to hire people," he said.

"We are hiring people with technical knowledge in our area (cybersecurity) and those people are rare. Those people want to see a stable business model, and they probably wouldn't leave and jump ship just for promises.

"Of course, [Optiv] is a huge, credible company in the US, I understand, but it's damn difficult to really get off the ground in European countries because of the struggle to get the right people."