Acquisition to enhance Accenture capabilities in next-generation Security Operations Center, cyber operations, security engineering and advanced cyber analytics
ARLINGTON, Va; Oct. 5, 2016 – Accenture (NYSE: ACN) has entered into an agreement to acquire Defense Point Security, LLC (DPS), a privately held cybersecurity company that supports the U.S. federal government with advanced cyber defense and response capabilities—including advanced Security Operations Center (SOC) expertise, cyber operations, security engineering, and cyber analytics. DPS, recently recognized as one of the “World’s Hottest and Most Innovative Cybersecurity Companies to watch in 2016” by Cybersecurity Ventures, will become a wholly owned subsidiary of Accenture Federal Services (AFS).
Terms of the transaction are not being disclosed and the acquisition is subject to regulatory review and other customary closing conditions.
“With the velocity and ferocity of cyber threats, DPS’ expertise in enhanced operational security and advanced security analytics will boost AFS’ ability to bring cutting-edge cyber solutions that will help federal agencies best protect their most valuable information,” said David Moskovitz, chief executive, Accenture Federal Services. “The addition of DPS’ specialized cyber defense tools and methodologies, together with our powerful client insights, will further propel our strategy to be a leading provider of end-to-end, federal enterprise security services.”
DPS’ comprehensive suite of advanced detection, engineering and operations services, as well as expertise with cybersecurity consulting, Managed Security Services (MSS) and Big Data platforms, will strengthen AFS’ ability to help federal agencies maximize cyber defense.
“The sophistication of cyber-attacks continues to increase,” said George McKenzie, chief executive officer, Defense Point Security. “We are focused on evolving the defensive strategies and solutions to best address the rapidly evolving federal threat landscape. We are excited to join forces with Accenture Federal Services, and to work with its cyber team to address the pressing challenges facing our clients.”
“By combining AFS’ application and data-centric security capabilities with DPS’ cadre of highly skilled cybersecurity professionals, we are well-positioned to offer a bold set of sophisticated capabilities including cyber defense and incident response, complex security integration and advanced cyber analytics to maximize our federal clients’ operational security,” said Ira “Gus” Hunt, AFS cybersecurity lead. “Together, we will deliver leading-edge security solutions that build resilience from the inside out—giving clients the confidence to focus on what matters most.”
For the third consecutive year, DPS has been listed on the Inc. 5000 – created by Inc. Magazine, which annually ranks the country’s top fastest-growing private companies. DPS has been listed in Washington Business Journal’s 50 Fastest-Growing Companies, Washingtonian’s “50 Best Places to Work”, a three-time top placeholder on Virginia Business “Best Places to Work” and a finalist for the 2015 Greater Washington Government Contractor Awards.
When closed, this acquisition in the federal cybersecurity sector will further Accenture’s momentum in growing its cybersecurity expertise. In the past several months, Accenture has made additional investments including, among others, the acquisitions of FusionX (an Arlington, VA-based firm focused on advanced adversary simulation and incident response). and Cimation (a Houston-based firm that specializes in IIoT and industrial control system security).
Accenture Federal Services, a wholly owned subsidiary of Accenture LLP, is a U.S. company with offices in Arlington, Virginia. Accenture’s federal business has served every cabinet-level department and 30 of the largest federal organizations. Accenture Federal Services transforms bold ideas into breakthrough outcomes for clients at defense, intelligence, public safety, civilian and military health organizations.
Based in Alexandria, VA, DPS is a provider of cybersecurity services and solutions for government and commercial customers. Harnessing innovative proprietary tools, an advanced Analysis Lab, and an innovative workforce of hybrid security professionals, DPS leverages decades of training and experience to enable effective and efficient use of customers’ IT budgets and resources. DPS provides cybersecurity services that include: Security Engineering & Architecture, Cyber Operations, Managed Security Services, Information Assurance, Cybersecurity Education & Training.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company and Defense Point Security, LLC will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company does not accurately anticipate the cost, risk and complexity of performing its work or if the third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be less profitable than expected or unprofitable; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; changes in the company’s level of taxes, as well as audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company might not be successful at identifying, acquiring or integrating businesses, entering into joint ventures or divesting businesses; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
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