Everfox, a prominent U.S.-based provider of cybersecurity solutions for government bodies and critical infrastructure sectors, is poised to acquire Garrison Technology, a British firm renowned for its hardware-enforced security. This acquisition, anticipated to be finalized by the summer of 2023, represents a significant leap forward for Everfox, enhancing its capabilities in threat prevention and insider risk management for its core clientele.
The foundation for this acquisition was laid following Everfox’s strategic realignment after its separation from Forcepoint, facilitated by TPG Capital in a $2.45 billion transaction. Sean Berg, CEO of Everfox, articulated that the acquisition of Garrison Technology is a logical progression. “Knowing them and working with Garrison and partnering with them for the past two years made perfect sense, as their complementary technology fits within our strategy of high-assurance cybersecurity,” Berg conveyed to Information Security Media Group.
Central to Garrison Technology’s offerings is its hardware-enforced security, which employs FPGA (field-programmable gate array) silicon to ensure secure data transfers across networks, free from malware. This technology is particularly invaluable in high-threat environments such as government and regulated industries, where data integrity and security are critical. Berg elaborated, “Garrison’s technology ensures that data passing across networks cannot carry any sort of malware or other threats, providing the high level of assurance needed for government and critical infrastructure use cases.”
The acquisition is not merely about integrating new technology but also about augmenting existing capabilities. Garrison’s proficiency in remote browser isolation and secure access to different security domains complements Everfox’s expertise in secure information transfer between domains. This synergy promises to deliver unmatched protection for high-risk networks, underscoring the strategic brilliance of this acquisition for both companies.
Garrison Technology, founded in October 2014 by David Garfield, has experienced substantial growth. In the past year alone, the company expanded its workforce by 25.5%, reaching 128 employees by the end of March 2023. Its revenue surged by 58.3% to $25 million for the fiscal year ending March 31, 2023, driven primarily by international sales, which soared by 113.6% to $12 million. “We created Garrison to develop nation-state-level security technologies that enable the most sensitive government missions to operate efficiently in a digital world,” said Garfield. “Everfox and Garrison share a similar mission, and we are confident the combination of our complementary hardsec solutions with Everfox’s portfolio will accelerate the delivery of high-assurance security.”
Despite its impressive growth, Garrison reported a comprehensive loss of $7.4 million for the fiscal year ending March 31, 2023. This loss should be viewed in the context of the company’s aggressive expansion and investment in cutting-edge technology. Garrison’s success in the U.S. market is particularly noteworthy, with a 157% increase in sales, attributed to strategic positioning within federal government circles and the onboarding of new clients to its browser isolation cloud service. Garrison’s hardware-enforced approach to web security, unlike software-based solutions, is inherently more resilient to hacking attempts, providing a robust defense against nation-state web threats. Its browser isolation tool effectively mitigates web-based risks, including ransomware, phishing, and other forms of malware, offering a higher level of security assurance.
More than two-thirds of Garrison’s employees are based in the United Kingdom, with 10% located in the United States and the remainder spread across countries such as Pakistan, India, and South Africa. Approximately 60% of its workforce is dedicated to engineering, highlighting the company’s commitment to innovation and technological advancement. TPG Partner Tim Millikin emphasized the strategic fit of this acquisition: “The operating environment for the defense and intelligence communities has only become more complex, with cyberthreats from sophisticated actors growing in frequency. Garrison’s distinctive technology paired with Everfox’s expertise and history in government security create a powerful solution to further global resilience.”
The acquisition of Garrison Technology by Everfox is set to significantly impact the cybersecurity landscape. The integration of Garrison’s hardware-enforced security technology with Everfox’s existing solutions is likely to spur the development of new, innovative cybersecurity products. These products could offer enhanced protection for high-threat environments, setting a new benchmark for cybersecurity in government and critical infrastructure sectors. Moreover, this acquisition is not merely a growth opportunity for Everfox but also a potential catalyst for broader industry trends. As cyberattacks grow increasingly sophisticated and frequent, the demand for robust, hardware-based security solutions becomes more critical. The emphasis on hardware-enforced security could prompt other cybersecurity providers to explore similar technologies, ultimately leading to a more secure digital ecosystem.
Looking ahead, the Everfox-Garrison merger is expected to yield several positive developments. The combined expertise and technologies of the two companies could pave the way for new cybersecurity solutions tailored to the unique challenges faced by government and critical infrastructure clients. This integration could also drive further growth for Everfox, opening new avenues for partnerships and collaborations with government agencies and enterprises both in the United States and internationally. The acquisition of Garrison Technology by Everfox is not just a business transaction but a strategic alliance aimed at fortifying cybersecurity defenses in high-stakes environments. As the companies work together to integrate their technologies and expand their market reach, the future of cybersecurity looks promising, with innovative solutions on the horizon to tackle the ever-evolving complexities of cyber threats.
