Royal Blue Capital, an investment banking firm based in Kansas City, announced the acquisition of the Automated Systems Management cybersecurity software products business of Capgemini North America by TELEO Capital, based in Los Angeles, in partnership with members of management. Royal Blue advised management and co-invested in the business.
The business purchased was previously known as Industrial Defender, the market-leading developer of cybersecurity products for global industrial control systems. Based in Foxborough, Massachusetts, the business serves industrial customers domestically and abroad. The acquisition of the business enables Industrial Defender to re-establish itself as a stand-alone brand within the cybersecurity industry, invest in the development of new products, and expand its customer base while enhancing services to existing customers.
Jim Crowley, former head of sales for Industrial Defender before it was sold to Lockheed Martin in 2014, has rejoined the company as CEO. “The Industrial Defender management team and I are very excited to work with TELEO Capital because of its team’s track record of successfully carving out software businesses from conglomerates and thereafter growing the businesses. We are excited about their commitment to investing in management’s vision for the company,” said Crowley.
Industrial Defender’s Chief Technology Officer Phil Dunbar said, “There is a growing need for reliable, diligent, and first-rate cybersecurity products, especially in global industrial control systems, and the re-establishment of Industrial Defender in this market is an important step in keeping critical infrastructure secure.”
George Kase, a founding partner of Los Angeles-based TELEO Capital, said, “Industrial Defender is an important and exciting investment for our firm, given the company’s reputation and position within the ICS cybersecurity market. We believe it to be vital that the industry continues to make meaningful investment into developing systems that repudiate increased cyber threats and prevent disruption to critical infrastructure. Management’s passion for developing and delivering best-in-class cybersecurity products to new and existing customers was a very compelling aspect to our interest in the business. We’re looking forward to working with our management partners over the coming years.”
Terms of the transaction were not disclosed.