New York-based cybersecurity private equity firm Option3 is actively engaged in negotiations to acquire a number of companies addressing specific cyber challenges, the company tells TechBullion. The move is aimed at building a next-generation “cyber-focused defense technology platform,” known internally as RESILIENT.
The RESILIENT platform has been rapidly progressing in recent months as discussions near their culmination, and initial transactions are expected to reach around $100 million, the company says.
Manish Thakur, Managing Partner at Option3, notes the objective of RESILIENT is to “provide the national security customer with the best and most needed cyber capabilities as quickly as possible. With cyber threats evolving at an incredible speed, we need to match pace with cutting-edge technology responses. However, navigating the complexities of the federal sales cycle poses challenges for many young companies and RESILIENT is our solution to this dilemma.”
Thakur continued, “We are committed to continually enhancing our capabilities to meet the national need. This may involve mergers and acquisitions, joint ventures, or other business arrangements. We are also exploring the fusion of technologies and approaches to create new capabilities. L3 Communications’ success in building a C4ISR conglomerate is a close parallel to our company building strategy, except in this case RESILIENT is operating in the domain of C5ISR.”
RESILIENT aims to deliver a unique technology platform exclusively focused on the cyber mission. The platform will align with the national security community’s strategic direction, enabling rapid deployment of scalable, dual-use technologies. RESILIENT’s capabilities will span systems engineering and integration, digital transformation, software engineering, business intelligence and data analytics, and zero trust IoT and OT security.
With interoperability being a focal point, Option3’s technology team has begun developing a “military grade” zero trust architecture. This initiative aims to overmatch foreign adversaries like China and Russia and defend against others seeking to undermine U.S. interests.
The firm’s definition of national security also extends beyond the military. Recently, Option3 initiated a new effort to secure critical infrastructure. This covers aging systems not designed for modern cyber technologies and extends to modern connected vehicles, which now have more lines of code than an F-35.
Option3’s Reston-based Operating Partner, Lisa Donnan, believes in the necessity of a versatile cybersecurity provider;
“There hasn’t yet been a provider capable of addressing the extraordinarily wide attack surface area or the diverse forms of protection needed to truly enhance our nation’s defense. This new platform will provide the systems needed to address this critical and timely problem while remaining nimble to the current and future risks that face the warfighter on a daily basis.”
Founded in 2015, Option3 has expanded its investment strategy from early-stage to mid-market private equity, focusing on areas like Threat Intelligence and Operations Technology. Over the past seven years, Option3 has made strategic investments in defense and insurance, guided by its Technology Board consisting of former high-ranking officials from the CIA, DoD, and DHS, and an Advisory Council led by a former CEO of Lehman Brothers.