KippsDeSanto & Co. Advises Fidelis Cybersecurity Solutions, a Business Unit of General Dynamics Mission Systems, on its Sale to Marlin Equity Partners

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KippsDeSanto & Co. is pleased to announce the sale of Fidelis Cybersecurity Solutions (“Fidelis” or the “Company”), a business unit of General Dynamics Mission Systems, to Marlin Equity Partners (“Marlin Equity”). The acquisition by Marlin Equity will provide future resources and expertise around its commercial offerings to position it for continued growth over the long term.

Headquartered in Waltham, Massachusetts, Fidelis is a leader in the Advanced Threat Defense (ATD) space and provides a unique combination of cybersecurity products and Network Defense and Forensics (“NDF”) services. Fidelis’ patented deep session inspection technology and its ability to provide advanced malware / data theft protection and network security analytics in a single, tightly integrated system for continuous protection across the enterprise strategically positions the Company to capitalize on increasing organizational importance of cybersecurity across a vast number of industry verticals.

Fidelis’ elite team of security experts provides industry-leading services and acts as a key source of threat intelligence that further enhances its ATD technology solution. This real-time feedback allows the Company to quickly incorporate threat research and intelligence from the front line of network defense into its products. Fidelis serves an expansive list of customers, and its NDF team has successfully handled over 3,500 cyber threat cases and several of the most critical and complex intrusions to date.

We believe this transaction demonstrates several key trends in the software and cybersecurity M&A environment:

  • Continuation of corporate divestitures as defense contractors shape their portfolio to focus on core markets and capabilities
  • Attractiveness of and premium value placed on unique, proprietary products, technology, and intellectual property to address market needs
  • Knowledgeable financial buyers positioning themselves in mission-critical markets such as cybersecurity
  • Continued strong investor interest and public valuations given the recent high-profile cyber-attacks and overall advanced threat environment

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace / defense and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

 

PRESS RELEASE

LOS ANGELES – May 4, 2015: Marlin Equity Partners (“Marlin”) is pleased to announce that it has completed the acquisition of Fidelis Cybersecurity (“Fidelis”) from General Dynamics. Fidelis, a leading provider of advanced cybersecurity threat prevention, detection and protection solutions, offers a comprehensive portfolio of products, services and expertise that protect some of the world’s most recognizable brands from data theft, financial loss and reputational damage. The company’s flagship product, Fidelis XPS™, is an advanced threat defense platform that has been proven to be highly effective in not only detecting and preventing initial malware infections, but also preventing the subsequent spread of malware and theft of information from within an organization.

Peter George, who will continue to lead Fidelis as CEO, commented, “We are pleased to be partnering with a world-class private equity firm, with a long and proven history of growing technology businesses, to help us accelerate our unique and comprehensive advanced threat defense offering and market position. We share Marlin’s vision to more aggressively convey the value we are bringing to our customers and to challenge the market leader with the only proven and scalable alternative solution for advanced threat defense.”

“Fidelis is uniquely positioned to help customers protect their most valuable data and assets against advanced adversaries across the entire threat lifecycle, from intrusion to propagation to exfiltration, in one fully integrated solution,” said Peter Chung, a principal at Marlin. “We are thrilled to provide the resources and financial backing to grow Fidelis and solidify its position at the forefront of the rapidly evolving advanced threat defense, and incident response and forensics markets.”

About Marlin Equity Partners

Marlin Equity Partners is a global investment firm with over $3 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthens a company’s outlook and enhances value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 90 acquisitions. The firm is headquartered in Los Angeles, California with an additional office in London. For more information, please visit www.marlinequity.com.

About Fidelis Cybersecurity

Fidelis Cybersecurity offers a comprehensive portfolio of products, services and expertise to combat today’s sophisticated advanced threats and prevent data theft and breaches. The company’s solution allows commercial enterprise and government customers around the globe to face advanced threats with confidence through the use of its Network Defense and Forensics Services, delivered by a team of security professionals with decades of hands-on experience, and its award-winning Fidelis XPS Advanced Threat Defense products, which provide visibility and control over the entire threat lifecycle. For more information, please visit www.fidelissecurity.com.

For additional information, please contact Peter Spasov at (310) 364-0100 or via e-mail at pspasov@marlinequity.com.