In an effort to address the rapidly changing cybersecurity industry, Cyxtera Technologies will spin off its cybersecurity business into a separate company to be called AppGate, Inc.
AppGate will deliver a range of cloud- and hybrid-ready security and analytics products and services including AppGate SDP, a software-defined perimeter solution, and the Total Fraud Protection suite of risk-based authentication and digital threat protection capabilities. These and other related products already secure more than 1,000 organizations across 40 countries.
Google cybersecurity executive Michael Aiello will serve as CEO of AppGate. Greg Touhill, president of Cyxtera Federal Group, will launch the new security company’s federal business.
“This is exciting news in the evolution of our company and its capabilities,” Touhill said in an email to WashingtonExec. “We’ve grown our Cyxtera data center business to become the second largest retail colocation company in the world and our security line of business is second-to none. Creating the new AppGate company alongside our Cyxtera data center business brings together the world’s best capabilities in AppGate-SDP’s Software-Defined Perimeter technology enabling Zero Trust, Immunity’s nation-state grade cyber operations, Brainspace’s unparalleled augmented intelligence and analytics, and Easy Solutions’ proven total fraud protection capabilities. We’re creating the world’s premier cybersecurity company delivering products and capabilities that makes security simpler for our customers while making life difficult and miserable for adversaries.”
The companies will share the same ownership structure as the existing Cyxtera business, led by private equity firms BC Partners and Medina Capital.
The spinout is expected to be complete in the early first quarter of 2020, and should enable each organization to pursue the most appropriate business strategy to leverage its respective market opportunity.
“Customers and partners are looking for a clear leader in the emerging Zero Trust cybersecurity landscape, and we believe the time to accelerate mind and market share is right now,” Cyxtera CEO Manuel D. Medina said. “The new company will intensify our efforts in this arena, bringing a dedicated focus to helping protect enterprise and government information systems from today’s emerging threats, and providing the ability to act with precision and agility in a rapidly changing market.”