STOCKHOLM, Feb. 10, 2021
- EQT Private Equity makes a USD ~100 million growth investment in CYE, an Israel-based leader in cybersecurity and cyber optimization solutions
- CYE helps companies reclaim control of their cybersecurity by mimicking real-world attacks on their digital infrastructure, developing optimized risk prioritization and mitigation plans - making today's societies and digital environments a safer place
- EQT will leverage its global network and expertise in scaling software and cybersecurity companies -to accelerate CYE's go-to market and product investments, geographical expansion and assist in consolidating the fragmented cybersecurity ecosystem
STOCKHOLM, Feb. 10, 2021 /PRNewswire/ -- EQT is pleased to announce that EQT Private Equity, via its EQT Mid Market Europe fund, has agreed to make a ~USD 100 million growth investment in CYESEC ("CYE" or "the Company"). CYE's founder and CEO Reuven Aronashvili will retain a significant share in the Company and will continue to lead the Company's growth journey together with his management team building on its unique track record of growth and innovation. The investment, which marks EQT Private Equity's first investment in Israel, will support CYE's growth plans and help accelerate its go-to-market and product investments.
Headquartered in Tel Aviv, Israel and with offices in Europe and the US, CYE serves as trusted advisor to medium-sized and Fortune 500 companies around the globe, as well as to both EQT and numerous EQT portfolio companies. Since its foundation in 2012, CYE offers an automated and continuous approach to cyber assessments, geared towards an optimized mitigation plan. CYE supports its clients in building a more robust cybersecurity posture with cutting-edge AI and machine learning technology, coupled with professional services from world-leading cybersecurity experts - a combination which is unique in the market.
The world of cybersecurity threats is changing rapidly with attacks growing in complexity, sophistication and frequency. This trend has accelerated since the outbreak of the COVID-19 pandemic as more people are working from home which has increased the number of potential attack vectors. The resulting surge in security breaches led to a substantial increase in financial and reputational damages caused.
Today's cybersecurity environment is defined by highly skilled hackers who are able to circumvent the most sophisticated systems, making continuous penetration testing a prerequisite for a robust cybersecurity risk posture. As digital infrastructure continues its transition to the cloud and gains complexity, the importance of penetration testing will only increase going forward, placing CYE in an excellent position to capture significant market growth.
CYE is a highly purpose-driven organization with a mission to make today's societies and digital environments a safer place. EQT aims to reinforce CYE's societal contribution by helping to grow its global customer base, accelerate go-to-market investments, invest in product extensions across critical cybersecurity verticals, and drive consolidation of the fragmented cybersecurity space. Today, both EQT and numerous portfolio companies, as well as other blue-chip customers, rely on CYE's products.
Florian Funk, Partner at EQT Partners, said: "The backing of CYE marks EQT's first deal in Israel, which is a highly attractive market for technology investments, and a country in which EQT intends to increase its activity going forward. We have followed CYE's development closely over the last years and we are truly impressed with the company Reuven and his team have built to date. Their approach of pairing AI-based technology, services and world-class cyber expertise is unique in the marketplace and well-positioned for continued accelerated growth. We are proud to support CYE with both capital and competence as this investment aligns perfectly with EQT's thematic investment focus and ambition to back high growth companies by partnering with world class management teams. We are excited to embark on this journey of building a global cybersecurity champion jointly".
Reuven Aronashvili, CEO of CYE, said: "As hackers increasingly deliver devastating attacks, causing millions of dollars in lost revenue and productivity, CEOs of companies around the world have come to understand that accurately assessing cyber risk begins with them. We are well past the point where companies can limit cyber threats to one department. Today's attacks can hit the core of any business, essentially crippling the company. At CYE, we are laser-focused on building a company that fundamentally changes the way companies and organizations approach cybersecurity, enabling them to accurately assess the most urgent threats to their business. As we continue to build on this foundation, we are thrilled to welcome EQT as our new partner and are very excited to kickstart CYE's next phase of expansion and innovation and look forward to working together to make today's organizations safer".
The transaction is subject to customary conditions and approvals and is expected to close in February 2021.
Florian Funk, Partner at EQT Partners and Investment Advisor to EQT Private Equity, +49 89 2554 9908
EQT Press Office, firstname.lastname@example.org, +46 8 506 55 334
EQT is a purpose-driven global investment organization with more than EUR 84 billion in raised capital and over EUR 52 billion in assets under management across 17 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
CYE brings a fact-based approach to organizational cyber defense, managing real business risks and optimizing the cybersecurity investment. CYE serves as a trusted advisor to medium-sized and Fortune 500 companies in multiple industries around the world.
More info: www.cyesec.com
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