SecurePipe and Farm9, both leading providers of managed network security services, today announced they have combined their businesses in a strategic move to meet the growing needs of financial institutions and global public companies for comprehensive ´best of breed´ managed network security solutions. Continuing to do business as SecurePipe, the combined company will have greater resources and financial capacity to serve its client base of banks and other financial services firms, as well as enterprises in manufacturing, distribution, energy, retail, healthcare and education.
SecurePipe will retain its headquarters in the Chicago suburb of Lincolnshire, while Farm9´s Emeryville headquarters will become the company´s West Coast security operations center and regional office. “A key aim of the combination is to expand our geographic reach to achieve a strong national presence, enabling us to target a very complementary set of services to a wider range of financial services clients and other publicly traded companies,” said Art Roldan, CEO of SecurePipe.
“Through this combination of two dominant regional firms, we are establishing the only nationwide managed security services company focused on the banking and financial services sectors,” Roldan continued. “By combining the complementary strengths of our service models, managed service lines and client composition — as well as our complementary geographic coverage — we have created the pre-eminent managed network security company in the U.S.”
According to Farm9 CEO Guy Morgan, who will become SecurePipe´s vice president of client services, “The commitment of SecurePipe and Farm9 to an open source computing model is especially important for our growth. The technology platforms we have built are easily integrated and allow us to create optimized solutions for a greater range of clients than ever before, including very large financial institutions with assets exceeding $10 billion.”
“The combination of SecurePipe and Farm9 is an instance of the trend toward consolidation in the managed security services arena,” said Howard Smith, a managing director at First Analysis Investment Securities. “Growing regulatory compliance requirements are an important driver of this trend. Security service providers must field significant infrastructure and expertise if they are to be able to ensure that their financial institution clients comply with measures such as the Graham-Leach-Bliley Act, which entail stringent examinations by regulators. Moreover, the security providers themselves are becoming subject to this scrutiny. In both cases, the cost of doing business for security providers is escalating, and many providers don´t have the financial wherewithal to be able to cope with that. SecurePipe is well-positioned to succeed in this regard.”
The combination expands SecurePipe´s business in numerous ways. The company´s customer base now comprises over 600 firms, including 400 banks and several fortune 500 financial services clients. SecurePipe is a venture-backed company and has a wide range of partnerships with industry leaders, including Fidelity Information Systems, Fiserv Vision, and Open Solutions Inc.
Roldan noted that SecurePipe´s essential business mission remains the same: to provide solutions for actively managing the network security needs of small to large enterprises, with a focus on preventative security solutions that meet legal and regulatory requirements. To that end, SecurePipe provides advanced managed security services for firewall lifecycle management, intrusion prevention and detection, audit trail archiving, email security (virus and spam), Internet presence protection, virtual private networks (VPN), vulnerability assessment, threat intelligence, and availability monitoring. Said Roldan, “These are our core areas of strength, and we will continue to provide excellence in performance in our customer relationships, with no change in services, service delivery, or points of contact to our current customers.”
Farm9 is SecurePipe´s second acquisition in recent months. In August, SecurePipe acquired the mailMAX Managed Services Division and the mailMAX email management technologies from the Mycom Group, Inc. (OTCBB:MYCM). The mailMAX acquisitions significantly increased SecurePipe´s client base, and expanded its capability for integrating advanced encryption, archiving and compliance solutions into its managed security services offerings to clients facing escalating regulatory compliance requirements. “As our industry consolidates, we plan to make further acquisitions to stay competitive and gain market share, even as we continue to grow our business organically,” Roldan said.