Wednesday, September 16, 2015

Chertoff & Carlyle Group Bet on CyberSecurity: Buy Coalfire

Businesswire reported:

Global alternative asset manager The Carlyle Group (NASDAQ: CG) and The Chertoff Group, a global security and risk management advisory firm, today announced they have acquired a majority stake in Coalfire Systems, Inc. 

Founded in 2001 and based in Louisville, Colo., Coalfire is a global cybersecurity and technology services provider specializing in cyber risk advisory, compliance assessments, technical testing and software services for private enterprises and government organizations. With its technical depth and breadth of IT services, Coalfire serves clients in sectors including technology, retail, payments, healthcare, financial services, education, local and state government and utilities.
This deal comes just weeks after Carlyle bought Novetta Solutions.   At the time I wrote:

Carlyle Managing Director Julius Genachowski serves on President Obama's two intelligence boards, so he is in a unique position to see government intelligence needs and advise Carlyle's triumvirate to invest accordingly.  His bio on Carlyle's website stated:
Mr. Genachowski has long advised President Obama on technology issues
Julius could've made President Obama's intelligence tea.  That would be an investment sweet spot for a private equity underwriter (PEU).
Yes it would.  Insiders are betting with the expectation of winning big.

Update 12-23-16:  Coalfire is buying federal intelligence contractor Veris Group

Update 12-24-19:  Carlyle and Chertoff are ready to flip Coalfire to Apax Partners in a PEU to PEU transaction.

Update 4-25-20:  The coronavirus pandemic failed to kill this deal.  Apax Partners went through with its deal to buy the company from Carlyle and Chertoff.