M86 Security’s Situation:
In 2008, email security provider Marshal Technologies and website filtering provider 8e6 were facing similar challenges of having strong technologies without the scale and resources to grab attention in the security markets. Each also saw an opportunity to build a comprehensive solution that would secure web-based content whether it came through email or an infected website. Updata had a long track record in the security industry and believed the Web was becoming the largest threat vector, creating an opportunity for a new player to emerge. Updata also believed that a combination of Marshal and 8e6 would have significant synergies, an opportunity to cross sell, and little overlap given the businesses different geographies and target markets.
Updata’s 2008 investment was the catalyst for the combination of the two businesses into M86 Security. With the business’s larger scale, the Company was able to attract new management talent, to gain the attention of industry analysts and the media, and to win business at larger customers. Updata worked with the Company to help it become the new leader in the “secure web gateway” space by, for example, recruiting an independent chairman to the board, driving the hiring of a new CEO, introducing key partners, as well as supporting the acquisitions of differentiating technologies from Avinti and Finjan. Ultimately Updata worked side-by-side with the M86 chairman to negotiate and drive the combination of M86 with Trustwave to create one of the largest privately held information security companies in the world.
Prior to its combination, M86 had become the largest independent provider of email and web security products, with a global presence and blue chip customer list. After its acquisition by Trustwave, the business contributed to the broader security and compliance story of the combined company, resulting in a sale to SingTel in 2014 for over $750 million.
“Updata brought more than venture funding to M86 Security. It brought fundamental belief in the goal backed up by enthusiasm, industry connections, financial and transaction rigor, and support for both organic and inorganic expansion. Updata was a strong voice at the board table bringing both valuable industry and operational insight, as well as disciplined strategic decision making”.
– Simon Wilson, ChairmanPortfolio Page