NetSPI Buys Virginia Cybersecurity Firm
With this week’s revelation about the depth of consumer information stolen in the UnitedHealth Group hack, cybersecurity remains top of mind for executives.
On Thursday, the Minnetonka-based insurer’s Change Healthcare subsidiary shared that hackers may have grabbed Social Security numbers, driver’s licenses numbers, passport numbers, and more.
For Minneapolis-based NetSPI CEO and president Aaron Shilts, the news only underscores the importance of adopting a more proactive cybersecurity posture.
These days, many players in the cybersecurity industry are “working to refocus on proactive security, versus being caught after a breach and having to respond.”
“It’s obviously much more efficient – and less damaging and expensive – to stay proactive,” Shilts said in a Thursday interview.
Shilts is now banking on a new acquisition to help shore up NetSPI’s lines of defense. Earlier this month, the company announced that it bought Virginia-based Hubble Technology Inc., which sells a “cyber asset attack surface management” product, or CAASM. Shilts said the technology will simply help boost NetSPI’s monitoring of customers’ internal assets.
“This rounds out our view of the internal network, which was the piece we were missing,” Shilts said of Hubble’s offerings.
The acquisition is only the third in NetSPI’s 23-year history, but it’s the first time the company is actually purchasing a new piece of technology. The other two acquisitions were largely professional services and teams, Shilts noted.
“In the past, when we engaged with customers, they’d often tell us what we should test for flaws, what systems, applications and networks. They’d tell us what they know,” Shilts said. “This acquisition allows us to discover what’s really there, and ensure they have complete coverage.”
Shilts declined to share the price of the transaction or the number of employees at Hubble, though he said NetSPI currently employs 650 people across North America, the United Kingdom, and India.
NetSPI tapped into $410 million financing deal secured two years ago to fund the purchase. The investor, New York City-based KKR & Co. Inc., has taken a “long-term strategic view of the business,” Shilts said.
“Investment in inorganic growth and M&A was a key part of their thesis,” he said.
Due to client confidentiality, Shilts couldn’t name specific customers. In terms of industries, though, Shilts said that NetSPI spends a lot of time working in “highly regulated and very targeted industries” such as financial services, insurance, and health care. The company works with nine out of the top 10 biggest banks in the U.S., he added.
NetSPI operates from an office in the North Loop of Minneapolis, where about 200 employees work.