Delta Risk LLC, a cybersecurity and risk management services provider owned by the Chertoff Group, has acquired security consultant Allied InfoSecurity.
Allied InfoSecurity, headquartered in King of Prussia, Pennsylvania, advises clients in health care and other industries on managing and improving information security programs, mitigating risk and regulatory compliance. San Antonio–based Delta provides cybersecurity assessments, including simulated hacking attacks; assistance with setting up security response teams and response plans; vendor assessments; cyber employee training; help with strategy; and managed cyber services.
The Chertoff Group, co-founded by former Homeland Security Secretary Michael Chertoff, advises clients on mergers and acquisitions, business strategy and security, and it’s also a private equity investor. In 2015, the group acquired a majority stake in Delta Risk and, in a separate deal in partnership with the Carlyle Group LP (Nasdaq: CG), it acquired a majority stake in Coalfire Systems Inc., a cybersecurity firm. Michael Chertoff is a member of Delta Risk's board of directors. In November, Mergers & Acquisitions spoke with Chertoff principal and head of private equity David Leach.
Michael McKinley and Patty Pezely, co-founders of Allied InfoSecurity, will join the Delta Risk leadership team, and Delta Risk will maintain Allied InfoSecurity’s King of Prussia office operations. Scott Kaine, CEO of Delta Risk, says that with the Allied acquisition, Delta will expand its East Coast operations. According to Delta Risk, the company is expanding its business with both federal agencies and commercial clients.
Other recent cybersecurity deals have included Thoma Bravo LLC, the private equity firm, acquiring Imprivata (NYSE: IMPR), a health care IT security company, earlier in July, Accenture plc (NYSE: CAN) purchasing the Maglan cybersecurity company in June, and the FireEye Inc. (Nasdaq: FEYE) cybersecurity firm acquiring competitor iSight Partners in January.
Chertoff Capital served as an exclusive strategic advisor to Delta Risk in the Allied acquisition. Terms of the deal were not disclosed.