Booz Allen Acquires Defy Security
Booz Allen Hamilton has acquired Defy Security, a cybersecurity portfolio company of Sverica Capital. The acquisition is intended to expand Booz Allen's global commercial business. The move reflects a broader trend of large defense contractors acquiring specialized tech firms to bolster their commercial offerings.
- Defy Security, founded in 2017 by CEO Justin Domachowski, tripled in size and partnered with over 400 cybersecurity vendors under its previous owner, Sverica Capital Management, which first invested in the company in November 2020. - The acquisition adds approximately 100 employees, including cyber engineers and solution architects, from Defy Security to Booz Allen's team. Defy will now operate as a subsidiary of Booz Allen. - A key goal of the acquisition is to accelerate the scaling of Booz Allen's existing cyber products, such as its AI-powered malware analysis tool, Vellox Reverser™, by leveraging Defy's commercial sales expertise. - This move signals an expansion of Booz Allen's international commercial business, particularly targeting growth in the United Kingdom and the European Union. - The transaction is expected to close in the first quarter of Booz Allen's fiscal year 2027, subject to customary closing conditions. Financial terms of the deal were not publicly disclosed. - Andrew Turner, the executive vice president for Booz Allen's global commercial business, stated that the combination will "unlock new market opportunities, accelerate innovation, and help our customers protect their most critical assets." - This acquisition follows Booz Allen's 2022 divestiture of its commercial managed threat business, indicating a strategic pivot to focus on its cyber consulting and advanced cyber services for both commercial and federal clients. - Defy Security was founded to "reimagine the way commercial enterprises buy and scale cyber technology," according to its founder Justin Domachowski, who will continue to lead the company.
