Australian private equity firm BGH Capital has backed the formation of CyberCX, which is consolidating 12 local cybersecurity brands to create Australia’s largest, dedicated cybersecurity organisation.
The brands are Alcorn, Assurance, Asterisk, CQR, Diamond, Enosys, Klein&Co., Phriendly Phishing, Sense of Security, Shearwater, TSS and YellIT. More organisations will be announced in the near future, CyberCX said in a statement.
The new business will be headed by John Paitaridis, former managing director of Australian telco Optus Business, who recently joined BGH Capital as the CEO of its IT portfolio. He is currently also chairman of the Australia Information Industry Association.
CyberCX has also poached former national cybersecurity adviser, Alastair MacGibbon, as its chief strategy officer. He used to run the government’s cybersecurity strategy as head of the Australian Cyber Security Centre.
CyberCX has over 20 offices across Australia with an initial workforce of more than 400 cybersecurity professionals.
The company will provide a full range of cybersecurity services, including consult and advisory, risk and compliance, security assurance, integration and engineering, training and education, incident response and digital forensics, and managed security services.
“The rapid increase in the number of cyber security threats globally is creating unprecedented risk and exposure for organisations in Australia which must be addressed,” Paitaridis said. “It is clear that many businesses, enterprises and government organisations are not yet well enough advised, supported or equipped to defend their mission critical assets.”
MacGibbon added: “The reach of cyber threats is pervasive, from websites, email and mobiles, to cars, financial systems, power grids, industrial systems and the internet of things. There is no safe harbour.”
The Australian cybersecurity industry is valued at $4.1 billion, according to CyberCX. Meanwhile, the global market reached $116.5 billion in 2018 and is growing at an 11 per cent CAGR in the 2019-2025 period, according to a report by Grand View Research.
BGH Capital, founded in 2017, closed its first fund at A$2.6 billion ($1.75 billion) in May 2018, claiming to be the largest private equity fund focused on Australia and New Zealand. The fund counts Singapore’s Temasek as a limited partner.