Kratos Defense & Security Solutions [KTOS] recently said it has acquired pure-play cyber security firm SecureInfo Corp. for $17.5 million in cash, further expanding its cyber security capabilities and customers.
The deal includes a potential earn out provision of $2 million based on SecureInfo achieving future financial targets.
SecureInfo, which is based in Northern Virginia, provides cyber security, cyber risk management and strategic advisory services. The company’s solution set covers cloud security, continuous monitoring and cyber security training. In addition, SecureInfo offers its RMS proprietary commercial-off-the-shelf software product that simplifies and automates the security authorization process.
On the product front, the RMS and some other products that SecureInfo has developed give Kratos significantly more capability in monitoring networks for intrusions, Eric DeMarco, president and CEO of Kratos, said recently. Those products allow near-real time and real-time intrusion detection of personal computers, thumb drives and networks, enabling identification of attackers and the servers they use, he said.
Attribution is “not an exact science” but SecureInfo’s capability allows customers to develop the telltale signs of where attacks are coming from as well as what is being attacked and how the attack is being carried out, DeMarco said.
Kratos, which currently does over $100 million annually in cyber security work, does have intrusion detection capabilities but they are limited to alerting customers to aberrations rather than providing more analytical clarity about the attack and attackers.
Kratos said the RMS product will be integrated into its NeuralStar family of situational awareness, cyber security and network operations management products.
“SecureInfo’s sole focus is cyber security, and the company’s deep knowledge of front-line cyber security issues will help us advance the NeuralStar products, as well as our cyber warfare solutions and the security capabilities built into the satellite communications products from our recently acquired Integral Systems group,” “Phil Carrai, president of Kratos Technology and Training Solutions, said in a statement.
SecureInfo brings several new key customers to Kratos, including two “cyber specific” customers within the national security community and Microsoft [MSFT] in the commercial arena, DeMarco said. Kratos already has Cisco Systems [CSCO] as a commercial customer for cyber products. SecureInfo’s other key customers include the Defense Department, in particular the Air Force and Army, the Departments of Homeland Security, Energy and Education, and large commercial customers, including cloud computing service providers.
SecureInfo is expected to have about $15 million in sales this year $2.5 million in earnings before interest, taxes, depreciation and amortization this year. Financial advisors on the deal included WWC Capital Group for SecureInfo and B. Riley & Co. for Kratos.