WASHINGTON--(BUSINESS WIRE)--Global alternative asset manager The Carlyle Group (NASDAQ: CG) and The Chertoff Group, a global security and risk management advisory firm, today announced they have acquired a majority stake in Coalfire Systems, Inc.
Founded in 2001 and based in Louisville, Colo., Coalfire is a global cybersecurity and technology services provider specializing in cyber risk advisory, compliance assessments, technical testing and software services for private enterprises and government organizations. With its technical depth and breadth of IT services, Coalfire serves clients in sectors including technology, retail, payments, healthcare, financial services, education, local and state government and utilities. In the last two years alone, more than 60 of the FORTUNE 500 have come to rely on Coalfire to define their roadmap for technology implementation, meet compliance mandates and test the efficacy of their processes and technologies. Coalfire has 300 employees in the United States and United Kingdom.
Brooke Coburn, co-head of Carlyle’s U.S. middle-market fund, said, “Cyber risk is an executive- and board-level matter. Organizations need a trusted advisor like Coalfire to effectively assess security risk and evaluate the effectiveness of cybersecurity strategies. In partnership with the company’s exceptional management team, we and The Chertoff Group will harness Coalfire’s outstanding reputation and capabilities to help clients counter advancing cybersecurity threats.”
Coalfire CEO Larry Jones said, “We believe Carlyle’s strategic enterprise, security portfolio and track record of growing companies, coupled with The Chertoff Group’s deep sector expertise, will enable us to better serve our clients and continue our strong growth. This investment will help expand operations globally, accelerate R&D and attract the best cybersecurity talent around the world.”
Michael Chertoff, former U.S. Homeland Security Secretary and the co-founder and executive chairman of The Chertoff Group, said, “Cyber threats are an existential risk to companies and individuals around the globe. We and Carlyle are excited to partner with Coalfire, an innovative technology-enabled services company helping clients to address cyber risks.”
Carlyle’s share of the equity for the transaction comes from the Carlyle U.S. Equity Opportunity Fund, a $1.1 billion U.S. middle-market fund. Financial terms of the transaction were not disclosed. Carlyle’s U.S. middle-market team has invested in Philadelphia Energy Solutions, the largest refinery on the eastern seaboard; Service King, one of the largest automotive collision repair centers in the U.S.; ECi Software Solutions, a provider of industry-specific technology; Traxys Group, a financial and logistical provider in the mining industry; AxleTech International Holdings, Inc., a manufacturer of automotive components; and PrimeSport, a global sports travel and events-management company.
Latham & Watkins and PricewaterhouseCoopers are serving as advisors to Carlyle. Kirkland & Ellis is serving as legal advisor to The Chertoff Group. Portico Capital Securities LLC served as the financial advisor and Cooley LLP is serving as legal counsel to Coalfire.
About Coalfire
Coalfire is the global technology leader in
cybersecurity strategy, cyber risk management and compliance services
for private enterprises and government organizations. Coalfire’s
professionals are renowned for their technical expertise and unbiased
assessments and recommendations. Coalfire’s approach builds on
successful, long-term relationships with clients to achieve multiple
cyber risk management and compliance objectives, tied to a long-term
strategy to prevent security breaches and data theft. Coalfire is
currently listed as No. 74 in the “Cybersecurity 500 Hottest Security
Companies” and was recently named one of the Top 20 Most Promising Risk
Management Solution Providers. For more information, visit www.coalfire.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a
global alternative asset manager with $193 billion of assets under
management across 128 funds and 159 fund of funds vehicles as of June
30, 2015. Carlyle’s purpose is to invest wisely and create value on
behalf of its investors, many of whom are public pensions. Carlyle
invests across four segments – Corporate Private Equity, Real Assets,
Global Market Strategies and Investment Solutions – in Africa, Asia,
Australia, Europe, the Middle East, North America and South America.
Carlyle has expertise in various industries, including: aerospace,
defense & government services, consumer & retail, energy, financial
services, healthcare, industrial, real estate, technology & business
services, telecommunications & media and transportation. The Carlyle
Group employs more than 1,700 people in 35 offices across six continents.
Web:
www.carlyle.com
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About The Chertoff Group
The Chertoff Group is a premier
global advisory firm focused exclusively on security and risk
management. The Chertoff Group helps clients grow and secure their
enterprise through business strategy, mergers and acquisitions advisory,
and risk management security services. In addition, The Chertoff Group
makes principal investments to provide growth capital to selected
private companies in the security industry. Most recently, The Chertoff
Group made a principal investment in Delta Risk, Inc., a global provider
of high-impact cybersecurity, risk management and capacity building
services to government and private sector clients. Headquartered in
Washington D.C., The Chertoff Group maintains offices in Houston,
London, Menlo Park, and New York City. For more information, visit www.chertoffgroup.com.
