Dublin-based global management consulting leader Accenture (NYSE: ACN) has acquired Israeli cybersecurity company Maglan from its founder and president Shai Blitzblau. Financial terms were undisclosed.
Accenture also officially launched its new Cybersecurity R&D Lab in Israel, marking another key milestone in the company’s cybersecurity expansion and leadership. The announcement was made at the 6th Annual International Cybersecurity Conference taking place during Israel’s Cyber Week, which runs June 19 to 23.
In addition, Accenture said it has joined The Floor, a new hub of financial technology startups based in Tel Aviv. The Floor was founded this year with support from Banco Santander, HSBC, Intesa Sanpaolo, RBS, and Intel Corp., to evaluate potential innovations for their clients and potentially their own strategic investments, while mentoring startups and strengthening their ties to the growing Israeli technology community. “In recent years, fintech investment in Israel has grown dramatically, with the number of fintech ventures growing from 90 in 2002 to approximately 430 today,” says Accenture.
The Maglan acquisition brings to Accenture a team of highly skilled cybersecurity professionals, who honed their skills fighting cyber crime and confronting cyber espionage around the globe. The acquisition advances Accenture’s strategy of leveraging Israel as a cybersecurity innovation hub to provide clients with cross-industry cyber defense consulting. Maglan has specialized tools and methodologies that will augment Accenture’s full range of security services and defensive countermeasures, comprising strategy and risk management through enterprise and extended enterprise security.
Based in the Tel Aviv metropolitan area, Maglan was founded in 1998 and has performed extensive penetration tests for numerous organizations in Europe. Its clients include companies in the financial services, telecommunications and automotive industries. The company specializes in offensive cyber simulation, vulnerability countermeasures, cyber forensics and malware defenses, and IT security research and development with a focus on threat intelligence.
“The growing variety and velocity of cyber attacks today cannot be eliminated with standard off-the-shelf solutions,” said Accenture’s chief strategy officer Omar Abbosh. “Tackling the security problem from the perspective of the hacker is the name of the game. That’s why we are actively pioneering fundamentally differentiated approaches to cyber attack simulation, threat modeling, cyber investigations and security risk advisory services. With this acquisition, we are now able to further tailor services to our clients’ ever-changing security needs.”
Accenture’ss Cybersecurity R&D Lab already has strong momentum behind it, bolstered by a new research agenda and collaboration with Team8, Israel’s leading cybersecurity foundry, to explore disruptive security technologies that will advance the fields of mission-focused security, active defense and Industrial Control Systems. Through Team8 and Accenture’s Labs Industrial Internet of Things research, teams will combine the latest advances in Industrial Internet security to provide clients with holistic solutions.
“The newest Lab will take advantage of our global footprint and ecosystem partners in cybersecurity to give clients unparalleled access to emerging, intelligence-driven threat identification solutions and post-attack remediation procedures,” said Lisa O’Connor, managing director, Accenture Labs – Security R&D. “Our top priority is to empower our clients to be resilient to cyber threats and attacks, and to be able to take the right actions faster. That is why we are investing in Israel’s ecosystem and in advanced cybersecurity technologies that can spark powerful innovations.”
“Whether due to spear phishing, malware or ransomware or a combination, the sophistication in attack vectors and cyber espionage is increasing,” said Maglan’s foundr and president Shai Blitzblau. “For nearly two decades, we have built robust security R&D capabilities and helped organizations across a broad range of industries adopt active cyber intelligent-driven approaches to address the rapidly evolving threat landscape and defensive mechanism. We are excited to join forces with Accenture worldwide, and to work with its cyber team here in Israel and across its network of Cyber Fusion Centers.”
“While cybersecurity has become a worldwide issue, Israel’s cybersecurity expertise is well recognized globally as a hotbed of security innovation and talent,” said Nadav Zafrir, Team8 co-founder and CEO, and former Commander of Israel’s Technology & Intelligence Unit 8200. “We see significant opportunities to ideate with Accenture in exciting new ways to deliver integrated cybersecurity capabilities that allow organizations to shift the balance from reactive to proactive security operations.”
The capabilities of Maglan will also form the core of a future Accenture Cyber Fusion Center in Israel and support Accenture around the globe. These state-of-the-art centers are dedicated to providing clients with one-stop access to a unique fusion of inter-disciplinary capabilities ranging from innovation and incubation to strategic consulting and transformation, to the managed delivery of a broad range of cybersecurity services. Accenture is continuing to expand its network of Cyber Fusion Centers and recently introduced a new location in Bangalore, India, joining existing facilities in Manila and Prague.
With the acquisition of Maglan, Accenture has now made a total of the five investments in the cybersecurity space in the past several months. Earlier investments include the acquisition of FusionX, a company with a 20-year cyber defense legacy; the acquisition of Cimation, an affiliate of Audubon Companies and an Industrial Internet of Things consulting company; a minority investment in Endgame Inc., a provider of cybersecurity software solutions; and a minority investment in Team8, a cybersecurity foundry.
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders, with 373,000 people serving clients in more than 120 countries, generating net revenues of over $31 billion, and net income of over $3 billion in 2015. Fortune named Accenture as the world’s most admired Information Technology Services company in 2015.