Booz Allen to Acquire Morphick for Cyber Defense

PRESS RELEASE

October 20, 2017 -- McLean, VA – Booz Allen Hamilton (NYSE: BAH) today announced that it has entered into an agreement to acquire technology firm Morphick, Inc., a leader in managed detection and response (MDR) services. The acquisition will expand Booz Allen’s managed security portfolio and strengthen the firm’s capability to help clients counter advanced cyber threats. Morphick’s technology is differentiated by an adaptive approach to threat detection that addresses the growing challenge of highly evolved cyber threats and determined attackers, empowering companies to protect themselves and respond more effectively. The platform, which analyzes the motivation and actions of attackers to thwart their attacks, assists companies in mitigating the challenges of the shortage of skilled cyber professionals and limitations of traditional, static defenses.

According to Gartner, “enterprises are transforming their security spending strategy in 2017, moving away from prevention-only approaches to focus more on detection and response.[i]” Booz Allen believes that Morphick extends a key focus for the firm’s consulting business—the detection and response capabilities, making them available as a 24x7 remotely delivered managed service. Further, Morphick complements Booz Allen’s current managed threat intelligence service, Cyber4Sight – helping clients use their insight into adversaries to better detect and respond to attacks. Morphick will initially support the firm’s commercial clients, and in the future, the capabilities will extend to support other client demands.

“The acquisition bolsters Booz Allen’s growth strategy in its U.S. Commercial business, where the focus is on expanding clients’ access to scalable, on-demand managed threat services. The addition of the Morphick team and technology further solidifies the firm’s ability to solve increasingly advanced cyber challenges,” said Horacio Rozanski, President and Chief Executive Officer of Booz Allen. “Under our long-term growth strategy, Vision 2020, Booz Allen has been moving closer to the center of our clients’ missions, fusing our consulting heritage with expert capabilities in cyber, digital solutions, engineering and analytics,” he added.

Morphick, a Forrester “Vendor to Watch” in The Top Security Technology Trends to Watch, 2017, combines detection, threat hunting, incident response, and tailored threat intelligence to understand an attacker’s unique strategy and then constantly morph a company’s defense posture. This customized, adaptive approach to detection “detects attacks on email, networks and host systems,” and deploys “curated intelligence” to assist clients in reviewing the event.[ii]

Bill Phelps, leader of Booz Allen’s U.S. Commercial business said, “A pioneer in detect and respond managed services for enterprises, Morphick’s technology and team expand Booz Allen’s managed security portfolio and strengthen the firm’s capability around detection and mitigation of the advanced cyber threat, thereby enabling our customers to amplify their threat defenses against attackers who are growing in sophistication and capabilities.” Phelps added, “We’re increasing the scope of our services to answer client demand for a scalable, agile, always watching and responding cyber capability that matches the pace of today’s threats.” 

CEO of Morphick Brian Minick said of the announcement: “The talented teams at Booz Allen and Morphick share a common point of view: cyber defense is not a compliance only activity. This is a multi-dimensional, quickly evolving threat requiring much more than automated, one-size-fits-all services. We’re pairing Morphick’s leading platform and approach with Booz Allen’s reach and expertise in advanced cyber defense services – a move that anticipates the client need for protection from the most advanced cyber threat actors.”

Morphick, located in Blue Ash, in suburban Cincinnati, employs roughly 40 seasoned analysts and professionals with experience protecting global enterprises from the most advanced cyber threat actors. Morphick was recognized by Gartner in its Market Guide for Managed Detection and Response Services.[iii] In 2017, Morphick was listed as one of the top 10 start-ups in Cincinnati by tech blog Geektime.

The transaction is expected to close in the third quarter of Fiscal Year 2018 and is subject to customary closing conditions.