Accenture Bulks Up New Security Unit By Scooping Up Israeli Firm

Accenture boosted the capabilities of its new cybersecurity unit Monday by acquiring privately held Maglan, an Israel-based company that's targeted to become part of a global network of cybersecurity centers.

The acquisition was announced only hours after Accenture opened its new cybersecurity unit. The solution provider giant said Maglan will help allow it to increase its resources to fight cyber offenses by adding improved security breach simulations, vulnerability countermeasures, cyber forensics and defenses against malware.

Financial terms of the deal were not disclosed.

[Related: Accenture Snags Deloitte Exec To Lead New Security Unit, Targets $1B In Sales]

Sponsored post

In an earlier interview with CRN, Omar Abbosh, Accenture's chief strategy officer, said his company’s security ’brand’ is falling short of expectations. To fix it, he said, Accenture plans to invest tens of millions of dollars in acquisitions and organic growth initiatives.

’The growing variety and velocity of cyberattacks today cannot be eliminated with standard off-the-shelf solutions,’ Abbosh said in a statement. Abbosh said Accenture – No. 2 on CRN’s Solution Provider 500 list - is actively looking for new approaches to cyber-attack simulation, threat modeling, cyber investigations and security risk advisory services.

’Tackling the security problem from the perspective of the hacker is the name of the game. … With this acquisition, we are now able to further tailor services to our clients’ ever-changing security needs,’ he said.

According to the Accenture statement, Maglan will serve as the core of its future Israel Cyber Fusion Center in Tel Aviv. It will be a collaborative security-focused site that Accenture is planning to build as part of a global network; other centers are located in Bangalore, Manila and Prague.

The Cyber Fusion centers work together to help clients leverage a number of interdisciplinary security capabilities, such as the development of security solutions, as well as strategic consulting and managed delivery of cyber defense services via the cloud.

’The sophistication in attack vectors and cyber espionage is increasing,’ Shai Blitzblau, president and co-founder of Maglan, said in the Accenture statement.

The acquisition is one of five Accenture investments in the cybersecurity space in the past year, all of which laid the groundwork for the company’s newly announced security unit, Accenture Security, led by former Deloitte executive Kelly Bissell, whose hiring was announced Monday.

In August 2015, Accenture acquired FusionX, a provider of attack simulation, threat modeling and risk advisory services based in Arlington, Va. Four months later, it acquired Cimation, a Houston-based specialist in secure industrial control systems and the Industrial Internet of Things.

Then, in February, Accenture bought a minority stake in Israeli cybersecurity company Team8, and followed that up a month later by purchasing a minority share in cybersecurity software solutions provider Endgame Inc., of Arlington, Va.

Earlier Monday, Accenture announced the creation of its own cybersecurity unit, which brings all its cybersecurity units into a dedicated, standalone security practice headed by Bissell, who will carry the title of global managing director for Accenture Security.

Previously, the security offerings were housed across all five of the $31 billion company’s business units: strategy, consulting, digital, technology and operations.

Accenture said the new organization is expected to bring in well over $1 billion in annual revenue – higher than the current $500 million to $1 billion – by addressing industry-specific vulnerabilities and growing Accenture's presence in such areas as mobile security, traditional governance, and risk and compliance (GRC) consulting.