Trustwave — an MSSP Alert Top 250 MSSP and Top 40 MDR company — has been scooped by The MC² Security Fund, a growth equity fund and an affiliate of The Chertoff Group security and investment firm.
This is M&A deal No. 9 that MSSP Alert and sister site ChannelE2E have covered so far in 2024. See more than 2,000 technology M&A deals for 2023, 2022, 2021 and 2020 listed here. Terms of the deal were not disclosed.
Based in Chicago, Illinois, Trustwave has approximately 1,600 employees according to LinkedIn. The MSSP offers a comprehensive offensive and defensive cybersecurity portfolio specializing in managed detection and response (MDR), managed security services, cyber advisory, penetration testing, and database and email security. The Trustwave SpiderLabs team provides threat research, intelligence and threat hunting, which are infused into Trustwave services and products to fortify cyber resilience in the age of cyberattacks, the company stated.
MC2 makes private equity investments in high growth companies within the security and risk management industry. Investment sectors include cybersecurity, defense technology, government services and homeland security, stated its parent company, The Chertoff Group.
MDR Player Extends Market Reach
Trustwave CEO Eric Harmon explained how MC²’s acquisition aligns with Trustwave’s MSSP business strategy:
“Alongside MC², The Chertoff Group, and their tremendous expertise, we are positioned to further extend the global reach of our comprehensive offensive and defensive cybersecurity portfolio, providing organizations with unmatched protection and strategic guidance. I’m exceptionally proud of Trustwave’s evolution as a leader in the MDR industry, marked by rapid growth with discerning enterprise buyers that outpaces the market, and sustained momentum with clients around the globe."
The Chertoff Group/ MC² has extensive experience with global Fortune 500 clients, as well as small to medium-sized businesses (SMBs) and numerous governmental agencies. Noting the gain for both organizations in the MSSP space, MC² Security Fund Partner Kanad Virk said:
“Today’s announcement is a testament to the immense synergies among MC², The Chertoff Group and Trustwave. We have known and worked with Trustwave for over a decade, and we couldn't be more confident in their industry-leading offerings, strong growth trajectory and seasoned leadership.”
Analyzing the deal around the MDR market impact, IDC Worldwide Security Services research manager Scott Tiazkun commented:
“Trustwave executives say they saw the cyber market shifting and made the decision to focus on the emerging MDR market. This has resulted in strong growth for the company’s MDR and co-managed SOC offerings as clients are looking for this combination of services. This growth is particularly pronounced in large enterprises in healthcare, financial services, hospitality, transportation and logistics, retail and manufacturing verticals.”
Trustwave Builds Product Portfolio, Channel Partnerships
Trustwave released the Trustwave Managed SIEM (security information and event management) In October 2023, which is available as part of its Managed Security Services for Microsoft Sentinel and Microsoft XDR (eXtended detection and response) security products. In September 2023, Trustwave attained Microsoft Verified Managed Extended Detection and Response (MXDR) Solution status and became a FastTrack Ready Partner for Microsoft 365.
The United States Patent and Trademark Office (USPTO) in March 2023 awarded an expanded database security contract to the government solutions division of Trustwave. The MSSP provides its Rights Management and Activity Monitoring DbProtect database security services to USPTO. USPTO can use these services to assess threats to databases and gain visibility into vulnerabilities that could lead to data breaches. Trustwave is helping USPTO further build out its zero trust architecture
The USPTO contract announcement came on the heals of Trustwave incorporating its MDR solution into the Trellix XDR platform. And a year ago, Trustwave relaunched its Advanced Continual Threat Hunting Platform. Trustwave also released its Enterprise Pen Testing (EPT) Service and a new version of its Co-Managed SOC (security operations center) solution in October 2022.
Trustwave offers the PartnerOne program to MSSPs and MSPs.
