Cyber security business snapped up by £152m network company
Leeds cyber security business Sec-1 has been acquired by network provider Claranet.
Claranet has acquired the business to expand its portfolio of services and strengthen its position in the security market. Managing director Matt Hawnt will continue as managing director of the business alongside co-founder Gary O’Leary-Steele.
Sec-1 was founded in 2001 and provides application and network penetration testing, security consultancy and training to the public sector and private companies.
The Claranet Group, based in London, turned over revenues of £310m in the year to June 2016. It was founded in 1996 and has grown to cover Europe and Brazil, with 7,000 customers and more than 1,800 employees based in 20 offices. It also has 37 data centres across European countries. Customers include River Island, Missguided, Pets at Home, Signet, MyOptique, Airbus, Peugeot, BBC, and ITV.
Michel Robert, Claranet’s UK managing director, said: “We are delighted to welcome Sec-1 to the Claranet Group. Sec-1’s experience with penetration testing and additional IT security services will complement our in-house expertise, leading to new and improved services for our customers.
“This acquisition represents the latest in a line of strategically-important deals that we’ve made over the past two years across Europe and in Brazil.”
Matt Hawnt, managing director at Sec-1 added: “I am very proud of Sec-1’s reputation and track record and am delighted the company will continue to exist both as a trading entity and a brand.”
A team from RSM, led by corporate finance partner Steve Hubbard with support from Umito Choji and tax partner Chloe Ellis, acted for the shareholders of Sec-1 on the transaction.
DWF’s corporate partner Gary MacDonald with assistance from Rachel Gervaise and Siobhan Cameron, acted as legal advisors to the shareholders.
Steve Hubbard, corporate finance partner at RSM, said: “As we have seen from recent events, IT security is a key concern for businesses not only due to the increased threat of cybercrime but also the ever-changing nature of the risk. Sec-1 has continued to evolve within this market, developing its service offerings and establishing itself as a trusted provider.
“The transaction will deliver real synergies between both businesses and allow Sec-1 to accelerate its already successful growth strategy, target new markets and continue to adapt to changes in the technological landscape.”
Gary MacDonald, corporate partner at DWF said: “As legal advisers to SEC-1 we have watched the business develop its scale and offering to the point where it is an attractive fit with a Europe-wide service provider, such as Claranet.
“Both sides recognised early on in discussions that this transaction would deliver real benefit to SEC-1 and Claranet, and their clients; and there was real desire on both sides to get a deal done. We are delighted to have played a part in that. We look forward to watching SEC-1 go from strength to strength as part of the Claranet group.”
