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October 20, 2017
McLean, VA – Booz Allen Hamilton (NYSE: BAH) today announced that it has entered into an agreement to acquire technology firm Morphick, Inc., a leader in managed detection and response (MDR) services. The acquisition will expand Booz Allen’s managed security portfolio and strengthen the firm’s capability to help clients counter advanced cyber threats. Morphick’s technology is differentiated by an adaptive approach to threat detection that addresses the growing challenge of highly evolved cyber threats and determined attackers, empowering companies to protect themselves and respond more effectively. The platform, which analyzes the motivation and actions of attackers to thwart their attacks, assists companies in mitigating the challenges of the shortage of skilled cyber professionals and limitations of traditional, static defenses.
According to Gartner, “enterprises are transforming their security spending strategy in 2017, moving away from prevention-only approaches to focus more on detection and response. [i]” Booz Allen believes that Morphick extends a key focus for the firm’s consulting business—the detection and response capabilities, making them available as a 24x7 remotely delivered managed service. Further, Morphick complements Booz Allen’s current managed threat intelligence service, helping clients use their insight into adversaries to better detect and respond to attacks. Morphick will initially support the firm’s commercial clients, and in the future, the capabilities will extend to support other client demands.
“The acquisition bolsters Booz Allen’s growth strategy in its U.S. Commercial business, where the focus is on expanding clients’ access to scalable, on-demand managed threat services. The addition of the Morphick team and technology further solidifies the firm’s ability to solve increasingly advanced cyber challenges,” said Horacio Rozanski, President and Chief Executive Officer of Booz Allen. “Under our long-term growth strategy, Vision 2020, Booz Allen has been moving closer to the center of our clients’ missions, fusing our consulting heritage with expert capabilities in cyber, digital solutions, engineering and analytics,” he added.
Morphick, a Forrester “Vendor to Watch” in The Top Security Technology Trends to Watch, 2017, combines detection, threat hunting, incident response, and tailored threat intelligence to understand an attacker’s unique strategy and then constantly morph a company’s defense posture. This customized, adaptive approach to detection “detects attacks on email, networks and host systems,” and deploys “curated intelligence” to assist clients in reviewing the event. [ii]
Bill Phelps, leader of Booz Allen’s U.S. Commercial business said, “A pioneer in detect and respond managed services for enterprises, Morphick’s technology and team expand Booz Allen’s managed security portfolio and strengthen the firm’s capability around detection and mitigation of the advanced cyber threat, thereby enabling our customers to amplify their threat defenses against attackers who are growing in sophistication and capabilities.” Phelps added, “We’re increasing the scope of our services to answer client demand for a scalable, agile, always watching and responding cyber capability that matches the pace of today’s threats.”
CEO of Morphick Brian Minick said of the announcement: “The talented teams at Booz Allen and Morphick share a common point of view: cyber defense is not a compliance only activity. This is a multi-dimensional, quickly evolving threat requiring much more than automated, one-size-fits-all services. We’re pairing Morphick’s leading platform and approach with Booz Allen’s reach and expertise in advanced cyber defense services – a move that anticipates the client need for protection from the most advanced cyber threat actors.”
Morphick, located in Blue Ash, in suburban Cincinnati, employs roughly 40 seasoned analysts and professionals with experience protecting global enterprises from the most advanced cyber threat actors. Morphick was recognized by Gartner in its Market Guide for Managed Detection and Response Services. [iii] In 2017, Morphick was listed as one of the top 10 start-ups in Cincinnati by tech blog Geektime.
The transaction is expected to close in the third quarter of Fiscal Year 2018 and is subject to customary closing conditions.
About Booz Allen Hamilton
For more than 100 years, business, government, and military leaders have turned to Booz Allen Hamilton to solve their most complex problems. They trust us to bring together the right minds: those who devote themselves to the challenge at hand, who speak with relentless candor, and who act with courage and character. They expect original solutions where there are no roadmaps. They rely on us because they know that—together—we will find the answers and change the world.
We solve the most difficult management and technology problems through a combination of consulting, analytics, digital solutions, engineering, and cyber expertise. With global headquarters in McLean, Virginia, our firm employs more than 23,300 people and had revenue of $5.80 billion for the 12 months ended March 31, 2017. To learn more, visit BoozAllen.com. (NYSE: BAH)
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
[i] Gartner Press Release: Gartner Says Detection and Response is Top Security Priority for Organizations in 2017, 14 March 2017, (http://www.gartner.com/newsroom/id/3638017)
[ii] Forrester: The Top Security Technology Trends To Watch, 2017 (Report)
[iii] Gartner: Market Guide for Managed Detection and Response Services, Toby Bussa, Craig Lawson, Kelly M. Kavanagh, Sid Deshpande, 31 May 2017 (Report)