Network-security hardware vendor WatchGuard Technologies, based in Seattle, has acquired the HawkEye G threat-detection and response technology from Hexis Cyber Solutions, of Hanover, Md. WatchGuard, which is privately held, paid $3 million in cash and 1.7 million shares, plus other consideration, according to an SEC filing by Hexis’ parent company.
HawkEye G displays cybersecurity threats and helps companies respond more quickly to them, the companies said. WatchGuard, which sells bright red firewall and threat-management boxes, will integrate the technology into its own offerings, which are used by more than 75,000 organizations, the company said.
Hexis said in the SEC filing that it expects the stock from WatchGuard “to be liquidated eventually for $10 to $12 million assuming revenue growth and multiples of comparable companies offering similar security products and services.”
The deal increased WatchGuard’s headcount to 510, from 470, because 40 Hexis employees became WatchGuard workers as a part of the deal.
Hexis is owned by KEYW Holding Corp. KEYW Holding is shutting down Hexis entirely, having sold off that company’s HawkEye AP product line to an affiliate of Ignite Technologies, of Austin, Texas, last month for an undisclosed sum, it said in a release.
In May 2014, Joe Wang stepped down as WatchGuard’s CEO, having served in that role for seven years. He was succeeded by Prakash Panjwani, who took the reins in April 2015. During the interim period, the company was led by Michael Kohlsdorf, an operating partner with Francisco Partners, the private equity firm that bought WatchGuard in 2006 for $151 million.