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One Identity Hires New CEO Before Quest Software Spin-Off

Jay Fitzgerald

The move comes five months after Clearlake Capital purchased Quest Software for a reported $5.4 billion.

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New One Identity CEO Mark Logan

Five months after being acquired by Clearlake Capital, Quest Software has hired a new CEO for its One Identity unit in preparation for an eventual spin-off of the identity security business.

Mark Logan, who most recently served as CEO of Boulder, Colo.-based LogRhythm, was quietly appointed CEO of One Identity late last month, becoming the unit’s first full-time CEO, the company said Tuesday.

In an interview with CRN, Logan, who has led a number of private equity-backed tech firms over the past 20 years, made clear his appointment is effectively the first step toward an eventual spin-off of the 1,000-employee One Identity into an independent company.

[RELATED STORY: ONE IDENTITY BUYS ONELOGIN TO CREATE BROADER IDENTITY PLATFORM]

“We’re beginning the journey of separating from Quest,” said Logan. “Quest and One Identity will no longer be joined at the hip.”

He didn’t give a timeline for the split, noting a number of matters need to be cleared up first, including HR, legal and IT issues. “This will be a process that takes some time,” he said.

In a statement to CRN after this article was originally posted, Quest CEO Patrick Nichols indicated that it may take a while before any spin-off occurs.

“This will be a process that takes some time,” Nichols said in the statement. “We are making a large investment in One Identity with the addition of Mark Logan as its first [CEO]. One Identity is on a journey to become the one company capable of providing the true unified identity security platform.“

After the spin-off, Clearlake Capital will remain sole owner of One Identity, Logan said.

But until the separation takes place, Logan said customers and employees should “see very little changes,” as both Quest and One Identity continue to work closely together out of their joint headquarters in Aliso Viejo, Calif.

In a press release, Nichols praised Logan’s leader qualities.

“Mark’s deep experience growing enterprise software companies makes him the perfect fit to lead One Identity,” he said. “One Identity is leading the market as the only company to offer a true unified identity security platform, and I have full confidence that Mark’s expertise will help the company continue to capitalize on its market leadership.”

A representative from Clearlake was not made available for a comment.

Last October, One Identity purchased San Francisco-based OneLogin, in an attempt to bring identity governance, privileged access and identity access management together on one platform.

But just over a month later Clearlake announced it was purchasing Quest Software, along with its One Identity holding, for a reported $5.4 billion, including debt, after a half-decade of being owned by Francisco Partners. The deal closed in early February.

Now Quest, which employees more than 3,000 people, has started the process of spinning out One Identity less than six months after the Clearlake acquisition closed.

In a statement, Narayan Sharma, global head of IAM and cybersecurity defense platforms at Tata Consultancy Services (TCS), a partner of One Identity, appeared confident about the move to make One Identity an independent company.

“This spin-off demonstrates One Identity’s tremendous focus and intent around the growth of the digital identity business,” he said. “We wish One Identity immense success in this endeavor and look forward to a positive impetus to our strategic partnership to jointly deliver value to our customers.”

As for One Identity’s channel strategy moving forward, Logan said he wants to increase the company’s percentage of business via the channel . 

Jay Fitzgerald

Jay Fitzgerald is a senior editor covering cybersecurity for CRN. Jay previously freelanced for the Boston Globe, Boston Business Journal, Boston magazine, Banker & Tradesman, MassterList.com, Harvard Business School’s Working Knowledge, the National Bureau of Economic Research and other entities. He can be reached at jfitzgerald@thechannelcompany.com.

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