The Carlyle Group LP (Nasdaq: CG) and the Chertoff Group have acquired a majority stake in cybersecurity provider Coalfire Systems Inc.
Coalfire, founded in 2001, helps protect companies from data theft and security breaches. The company lists 3M Co. (NYSE: MMM), Amazon.com Inc. (Nasdaq: AMZN) and IBM Corp. (NYSE: IBM) among clients. Coalfire CEO Larry Jones says the company will use the investment to grow globally.
Recent high-profile hacking events have compromised a wide range of websites, including the U.S. Office of Personnel Management , the University of Virginia and the Ashley Madison extramarital dating site.
The Chertoff Group is a business strategy and M&A advisory firm that focuses on the security and risk management sector. The firm was co-founded by former U.S. Homeland Security Secretary Michael Chertoff.
The Coalfire deal follows up Carlyle investing in another cybersecurity company called Novetta. Other recent deals in the sector include Elbit Systems’ $158 million purchase of Nice Systems’ cyber business and Q2 Holdings Inc.’s (NYSE: QTWO) $29 million deal for Centrix Solutions.
Separately, Carlyle announced the closing of its seventh U.S. real estate fund, valued at $4.2 billion.
Latham & Watkins and PriceWaterhouseCoopers advised Carlyle. Kirkland & Ellis represented Chertoff Group. Portico Capital Securities LLC and Cooley LLP advised Coalfire.