Updata Announces Sixth IT Security M&A Transaction in 2007

December 6, 2007

Updata Advisors advises Exploit Prevention Labs in acquisition by European buyer Grisoft

Updata represented Exploit Prevention Labs in its just-announced sale to Grisoft, a global security software vendor headquartered in the Czech Republic and backed by premier investors including Intel. Exploit Prevention Labs protects Internet users against malicious web sites and “drive-by” downloaded exploits encountered in everyday surfing on Google and other sites. The company was founded by information security veterans Bob Bales and Roger Thompson in 2005. Updata also represented Bob Bales’ prior internet security company Pest Patrol in its sale to CA.

This transaction represents Updata’s sixth IT security deal in 2007, extending the bank’s longstanding position as the premier M&A advisor to the IT security industry. Other IT security deals this year:

  • Merger of public client SurfControl (a leading internet filtering vendor) with Websense (Updata’s second transaction on SurfControl’s behalf)
  • Sale of client Consul (a premier identity-based insider monitoring firm) to IBM
  • Acquisition by client Perimeter (a major SaaS security vendor) of USA.Net
  • Sale of client NetContinuum (a leading web application firewall player) to Barracuda Networks
  • Strategic investment in client Intego (largest Mac security vendor) by Bessemer Venture Partners

IBM to Acquire Consul

December 8, 2006
Enables Integrated Security Management, User Activity Monitoring Across Entire IT Infrastructure

IBM has entered into an agreement to acquire Consul risk management, Inc., a privately-held software company headquartered in Delft, Netherlands with a principal office in Herndon, Virginia. Consul will become part of IBM’s Tivoli software unit.  Consul’s security administration capabilities for the mainframe and user activity monitoring, audit and reporting across platforms, complement IBM’s existing portfolio of security management solutions.

Security is a primary concern of IT administrators facing threats from sources outside and within the enterprise and challenged to comply with government and industry regulatory requirements.  As indicated in Updata Capital’s most recent IT Security M&A Update, the need for security compliance is driving acquisitions of pure-play security companies by both strategic and financial buyers.  Record M&A activity is accelerating security’s incorporation into storage, network management and other infrastructure areas with announced deal volume in 2006 year-to-date exceeding $5.7 billion (according to Updata’s deal database), an increase of 30 percent voer 2005 volume.

Updata Capital initiated the transaction, acted as financial advisor and assisted in the negotiations for Consul in its acquisition by IBM.


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