LevelBlue to acquire Trustwave, creating top global cyber giant
LevelBlue has entered into a definitive agreement to acquire Trustwave, a global provider of cybersecurity and managed detection and response (MDR) services, from the MC2 Security Fund, a private equity fund sponsored by The Chertoff Group.
This move will see LevelBlue combining its strategic risk management and cybersecurity infrastructure expertise with Trustwave's Fusion Platform and its cloud-native MDR service, which delivers continuous cybersecurity protection for clients around the world.
The two firms anticipate that pooling their capabilities will give enterprises increased visibility and control over how security resources are managed and provisioned, across cloud, hybrid, and on-premises environments.
Combined strengths
LevelBlue's AI threat detection platform will be joined by Trustwave's SpiderLabs threat research and intelligence, integrating defence mechanisms across diverse technological architectures. This strategic step also follows LevelBlue's recent agreement to acquire Aon's cybersecurity consulting arm, previously Stroz Friedberg.
The acquisition is expected to result in the formation of what both firms describe as the largest pure-play managed security services provider (MSSP) in the sector.
"The acquisition of Trustwave represents a pivotal moment for LevelBlue and the cybersecurity industry. Trustwave's extensive expertise in managed detection and response services, combined with its unparalleled threat intelligence from SpiderLabs and mission-critical FedRAMP and StateRAMP authorisations, perfectly aligns with our vision to deliver simplified and powerful cybersecurity protection to organisations. This strategic move reflects our commitment to delivering better cybersecurity outcomes to our customers and enhances our global go-to-market capabilities, as well as in the U.S. federal, state, and local government markets."
Earlier in the year, Trustwave became the first pure-play MDR service provider to achieve full authorised status under the United States Federal Risk and Authorisation Management Program (FedRAMP). Alongside its StateRAMP authorisation, this designation positions LevelBlue to address the Department of Defense's criteria for monitoring in the country's cyber industrial base and offers compliance for Cybersecurity Maturity Model Certification (CMMC) in federal, state, and local government contracts.
Trustwave Chief Executive Officer Eric Harmon highlighted the significance of the collaboration for clients facing an evolving array of cyber risks.
"We're thrilled to partner with LevelBlue to drive our next phase of growth and unlock even greater cyber value for our clients. The threat landscape continues to evolve at an increasingly rapid pace. This announcement reinforces Trustwave's market leadership, and together with LevelBlue, positions us to further strengthen our combined leadership position, bolster our offensive and defensive security portfolio, and drive additional innovation to further safeguard and fortify our clients against disruptive and damaging cyber threats."
Trustwave, headquartered in Chicago and supported by a workforce of more than 1,000, has an established reputation in MDR, managed security services, advisory, penetration testing, database security, and email security. Its SpiderLabs team undertakes research, intelligence, and threat hunting integrated into the company's portfolio of security offerings.
Analyst and investor perspectives
Industry commentator Christina Richmond, Principal Analyst at Richmond Advisory Group, sees the integration marking a key point in the sector's trajectory.
"Two longtime leaders in MSS and MDR coming together signals market maturation and industry consolidation, but also a powerhouse opportunity,"
"Trustwave's SpiderLabs team and Fusion platform integrated with LevelBlue's threat intelligence and machine learning capabilities, backed by the Open Threat Exchange (OTX), will enhance threat detection and response on a cloud-based platform. Add in the recently announced acquisition of Aon's Cybersecurity and Intellectual Property Litigation consulting groups, and the potential for a full-service global cybersecurity and risk management firm is apparent."
Chad Sweet, Chairman of Trustwave and Co-Founder of The Chertoff Group, commented on the significance for Trustwave and its customers.
"Joining forces with LevelBlue marks an exciting new chapter for Trustwave and our clients. The combination of LevelBlue's AI threat detection and Trustwave's FedRAMP and StateRAMP authorised Fusion Intelligent Security Operations Platform enables leading-edge cybersecurity protection for enterprises and government clients."
LevelBlue's ongoing strategic plan, according to its executives, is to consolidate capabilities across the sector in response to the rising demand for comprehensive and integrated managed cybersecurity solutions. The proposed transaction would position LevelBlue as the largest independent, pure-play MSSP worldwide once completed.
Shawn Hakl, Head of AT&T Business Products, noted the value of the acquisition for public sector customers.
"FedRAMP and StateRAMP certified managed detection and response capabilities are an exciting expansion to LevelBlue's managed security services. This business combination positions LevelBlue as a strategic provider of cybersecurity services in AT&T's portfolio, especially to our valued federal customers."
Santander has acted as financial advisor and Kirkland & Ellis as legal advisor to LevelBlue. For Trustwave, Guggenheim Securities has served as financial advisor and Pillsbury Winthrop Shaw Pittman as legal advisor. The Chertoff Group will provide strategic insight to LevelBlue to accelerate growth in the MDR segment.
Financial terms of the deal have not been disclosed. The acquisition is pending customary closing conditions.
