Data center provider’s unit will be a stand-alone company called AppGate
Cyxtera, a data center provider that has promoted its strengths in both infrastructure and security, is spinning out its cybersecurity business into a separate company that will be named AppGate.
The Lowdown: Once the spinout is completed in the first quarter of 2020, both companies will be owned by private equity firms BC Partners and Medina Capital, which currently own Cyxtera.
The Details: The decision to spin out the cybersecurity business was driven by the belief that as separate organizations, Cyxtera and AppGate will be freer to develop business strategies that will enable them to grow in their markets. The two companies will continue to be strategic partners, with AppGate using Cyxtera’s global footprint of 57 data centers to expand its as-a-service capabilities. In addition, Cyxtera will integrate AppGate products into its platform and connected through the data center provider’s CXD on-demand marketplace.
AppGate’s security and analytics products and services, which are used by more than 1,000 organizations in 40 countries and which can be used in the cloud or in hybrid cloud environments, include:
> AppGate SDP: A software-defined perimeter network security platform that leverages zero-trust capabilities and micro-segmentation
> Total Fraud Protection: A suite of risk-based authentication and digital threat protection tools
> Brainspace: An advanced data analytics platform for investigations, eDiscovery, and compliance
> Immunity: Tools for penetration testing, vulnerability assessment, security verification, and adversary simulation services
AppGate will be run by Mike Aiello, who will take over as CEO after almost three years as director of product management at Google Cloud. He also spent more than a year as chief information security officer (CISO) of Goldman Sachs’ Consumer and Commercial Bank.
Background: Cyxtera, launched in 2016, built up its security capabilities through a combination of in-house innovation and acquisitions, including buying Immunity last year. The company also has expanded the reach of its network of data centers, including last month with its latest European data center in Amsterdam and plans to grow the use of its CDX on-demand platform in both Amsterdam and Frankfurt, Germany.
The Buzz: “Customers and partners are looking for a clear leader in the emerging Zero Trust cybersecurity landscape, and we believe the time to accelerate mind and market share is right now,” Cyxtera CEO Manuel D. Medina said. “The new company will intensify our efforts in this arena, bringing a dedicated focus to helping protect enterprise and government information systems from today’s emerging threats, and providing the ability to act with precision and agility in a rapidly changing market.”
“Cyxtera has built the most comprehensive solutions for secure access and fraud protection. These solutions are backed by leading investigative analytics and adversary simulation capabilities. The team’s deep offensive expertise and defensive capabilities are built for today’s complex, hybrid infrastructures making things simple for our customers and complex for their adversaries,” Aiello said. “I’m delighted to join an exceptionally talented team as CEO to help enterprises and government agencies defend themselves in the world’s most hostile environments.”