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Security Partners Join Forces to Address Healthcare, Midmarket Needs

Cybersecurity and risk management company Delta Risk LLC has bought a security partner specializing in the midmarket space and plans to go after more healthcare customers.

Cybersecurity and risk management company Delta Risk LLC has bought a security partner specializing in the midmarket space and plans to go after more healthcare customers.

The San Antonio-based company's purchase of King of Prussia, Penn.-based Allied InfoSecurity will strengthen the combined company in security exercise training and evaluation as well as managed security services, according to Michael McKinley, president and CEO of Allied InfoSecurity.

"By combining our organizations, we feel like we're in a better position to help," McKinley told CRN. "We're very excited about what we're able to bring to our customer base."

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The combined company will employ more than 60 and retain the Delta Risk LLC name. Terms of the deal, which closed June 30 and was announced Thursday, were not disclosed.

The threats facing midmarket companies have multiplied, McKinley said, as an increase in bad actors has resulted in small and midsized enterprises being targeted for cyberattacks more frequently. This puts midsize businesses in a tough position, McKinley said, as they lack the security resources of a large organization, but still face the same threats and regulatory requirements as their more sizable counterparts.

"The very large consultancies tend to focus on the larger prizes," McKinley said. "So they [the midsized companies] are looking for help that's more oriented toward them."

As Fortune 500 companies have beefed up their security in recent years, attackers are increasingly try to worm their way into the large enterprises by penetrating the networks of smaller companies who serve as business partners, Tempy Wright, vice president of marketing for Delta Risk, told CRN.

Allied defined midsized companies as organizations outside the Forbes Global 2000 with annual sales between $50 million and $1.5 billion, McKinley said. The company works most closely with clients in regulated spaces such as financial services, healthcare, retail, critical infrastructure and manufacturing, he said.

"We're seeing a lot of growth in particular around healthcare," McKinley said.

Delta Risk, meanwhile, focuses primarily on the public sector space, particularly critical infrastructure and system controls in the U.S. federal government, Wright said. McKinley said government customers often have a larger resource base and more time to get things done, while resource constraints often force commercial customers to focus primarily on pragmatic deliverables and security posturing.

Both Delta Risk and Allied excel in helping organizations build cybersecurity practices from the ground up, with expertise in program development, program assessment and penetration testing, McKinley said.

Allied has a more seasoned managed security services practice, thanks to more than six years in the field, McKinley said, while Delta Risk offers sophisticated simulations focused on helping organizations prepare for, react and respond to attacks on stored information or IT infrastructure, Wright said.

From a geographic standpoint, McKinley said, the move will expand Delta Risk's presence in the Northeast corridor and extend Allied's reach further down the East Coast and into the South.

McKinley said he will serve as vice president and general manager of the combined company's healthcare organization, with Delta Risk CEO Scott Kaine leading the combined company. No employees were laid off as part of the acquisition.

Allied's employees will be folded into Delta Risk, McKinley said, so that the company can leverage its combined resources and present a single, unified message to the marketplace.

"By combining forces," he said, "we're able to address the market more effectively."

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