“Our goal is to provide ADT customers with the most comprehensive security solution to protect their business, and in today’s world, this not only means their physical premise, but also their network. Michael and his team will infuse cybersecurity DNA into our core business, allowing us to provide an offering that will distinguish our brand as the premiere resource for end-to-end security.”
– Timothy J. Whall, Chief Executive Officer, ADT
“The standard approach to cybersecurity was not designed to provide rapid response. This is a landmark opportunity to combine the brand and reach of ADT, with the technology and innovation of DATASHIELD to establish the new standard in the most comprehensive digital protection for Mid-Market and Enterprise businesses.”
– Michael Malone, Chief Executive Officer, DATASHIELD
Transaction Overview
- On November 14th, 2017, The ADT Corporation (NYSE: ADT) announced it has acquired DATASHIELD, LLC ("DATASHIELD")
- DATASHIELD was founded in 2009 and is the premier Managed Detection & Response (MDR) provider offering the next generation of managed security services for Mid-Market and Enterprise businesses. Headquartered in Scottsdale, Arizona, the company achieved rapid growth due to their highly skilled team of world-class security experts and experienced management team
- DATASHIELD is the only MDR provider to provide full packet capture and inspection beyond headers and metadata behind the firewall. The company serves various industries including healthcare, financial services, manufacturing, energy, legal and more
- DATASHIELD's SHIELDVision™ is a unified platform for organizing, managing and collecting cyber intelligence in real-time as well as automating security analyst workflows to close the gap between cyberattack and breach detection time and remediation for customers
- In September 2017, DATASHIELD opened its state-of-the-art Advanced Security Operations Center (ASOC), increasing customer capacity by 300 percent
- The transaction closed in October 2017. Following the acquisition, DATASHIELD now operates under the brand ADT Cybersecurity, with DATASHIELD CEO Michael Malone joining ADT as Senior Vice President, ADT Cybersecurity, reporting directly to Timothy J. Whall, CEO, ADT
- ADT Corporation is the leader in security and automation solutions for homes and businesses in North America. Headquartered in Boca Raton, Florida, ADT employs more than 18,000 people in the United States and Canada and is ranked No. 1 on the SDM 100
- ADT Cybersecurity services became available for Commercial and National Account customers effective immediately following the acquisition announcement
Transaction Significance
- ADT launches "ADT Cybersecurity" with the newly combined entity utilizing DATASHIELD's cutting-edge SHIELDVision™ platform and deep security industry expertise to create an unmatched real-time Cyber detection and response solution
- MDR is a Top 10 Cybersecurity technology for 2017 according to Gartner. It is estimated that by 2020, approximately 20 percent of mid-market and enterprise organizations will be using MDR services such as ADT Cybersecurity, up from less than 1 percent in 2016
- Data breaches are on the rise and increasingly more damaging to companies and individuals. MDR reduces time to detection from months to minutes. The median time of compromise to discovery is a staggering 80 days with the average cost of data breach costing organizations $3.62 million. Global statistics from the Ponemon report on the cost of a data breach show dwell time for malicious attacks has stretched to an average of 229 days from day of the attack to discovery
- The security gap is widening as advanced threats continue to bypass the first line of defense, and many organizations are struggling to deploy, manage and use an effective combination of expertise and tools to detect advanced cyberthreats. Mid-market and enterprise organizations are increasingly finding the need for 24/7 managed and monitored cyber solutions to help detect and respond to cyberattacks
- ADT Cybersecurity's SHIELDVISION™ technology employs an innovative approach by applying cyber threat intelligence to packet-level data, giving expert analysts the ability to identify compromises that are often missed by other technologies
- The acquisition reinforces ADT's commitment to provide customers with complete protection of the premise and network, positioning ADT as the premiere resource for end-to-end security. This service is uniquely positioned to provide Enterprise and Mid-Market businesses with Managed Detection and Response (MDR) services to combat advanced cyberthreats in real-time
Momentum Cyber's Role
- Momentum Cyber served as exclusive strategic Cybersecurity advisor to ADT
- Momentum Partners acted as exclusive financial advisor to DATASHIELD
If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.