Acquisition would allow Qualys to expand its market presence in military, national security and federal government
Foster City, Calif. – June 4, 2018 – Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of cloud-based security and compliance solutions, today announced that it has entered into a non-binding letter of intent to purchase Second Front Systems. When completed, the acquisition would be expected to provide increased domain expertise in building and delivering cybersecurity solutions tailored for the U.S. federal government, including defense, intelligence, and law enforcement.
Second Front Systems sources cutting-edge solutions in cybersecurity and advanced intelligence analytics, and delivers these solutions by working to engage the appropriate government stakeholders and modifying technology platforms to address mission requirements. Second Front Systems is currently a Qualys channel partner delivering solutions to federal agencies using the Qualys Gov Platform.
“This acquisition would enable us to strengthen our federal division and expand the reach of the Qualys Gov Platform to various government sectors including military and defense,” said Philippe Courtot, chairman and CEO, Qualys, Inc. “Second Front Systems provides comprehensive advisory services and cybersecurity solutions to government agencies addressing specific and pressing national security needs, to include those dealing with classified information. The Second Front team has significant expertise helping federal agencies build state-of the-art cybersecurity solutions as they embark on their digitization efforts. We hope to welcome the entire team to our federal division.”
The terms of the letter of intent providing for the proposed acquisition are non-binding and the parties will need to negotiate and enter into definitive agreements before proceeding with the proposed acquisition. If the parties are able to negotiate and enter into such agreements, it is anticipated that the proposed acquisition would be subject to regulatory approvals, as well as other closing conditions. Subject to satisfaction of all conditions and the closing of the proposed acquisition, Qualys would expect Second Front Systems to operate under its federal division as an independent subsidiary. If the parties are able to enter into and consummate the acquisition, Qualys would expect the transaction to close either in Q3 or Q4 of this year.
Qualys will host an event to launch the Qualys Gov Platform on June 6, 2018 at the International Spy Museum in Washington DC. Registration and agenda are available here.
Qualys, Inc. (NASDAQ: QLYS) is a pioneer and leading provider of cloud-based security and compliance solutions with over 9,300 customers in more than 120 countries, including a majority of each of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions in a single platform and build security into digital transformation initiatives for greater agility, better business outcomes and substantial cost savings. The Qualys Cloud Platform and its integrated Cloud Apps deliver businesses critical security intelligence continuously, enabling them to automate the full spectrum of auditing, compliance and protection for IT systems and web applications on premises, on endpoints and elastic clouds. Founded in 1999 as one of the first SaaS security companies, Qualys has established strategic partnerships with leading managed service providers and consulting organizations including Accenture, BT, Cognizant Technology Solutions, Deutsche Telekom, Fujitsu, HCL Technologies, HP Enterprise, IBM, Infosys, NTT, Optiv, SecureWorks, Tata Communications, Verizon and Wipro. The company is also a founding member of the Cloud Security Alliance. For more information, please visit www.qualys.com.
About Second Front Systems
Second Front provides advisory services to state-of-the-art technology firms seeking to inject their product or offering into the national security market. Through proof-of-concept pilots, lightweight systems integration, and a range of contracting vehicles, Second Front supports solutions to address specific and pressing national security needs. For more information, please visit www.secondfront.com.
This press release contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties including, among other things, statements regarding the proposed acquisition, including the proposed negotiation and entry into definitive agreements with respect to the proposed acquisition, the anticipated closing conditions to the acquisition and the timing for closing the acquisition, the facilitation of the delivery of new products, features and functionality, and its acceleration of Qualys’ entry into adjacent markets. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including the potential inability of the parties to successfully negotiate and enter into definitive agreements for the proposed acquisition, the possibility that any regulatory approvals or other closing conditions would not be satisfied or that the parties would not be able to consummate the proposed acquisition; the effects of the highly competitive market in which we operate, including competition from much larger technology companies; any inability to successfully develop and introduce new products, features, and services or enhance existing products and services; product liability issues, security breaches or other defects; and other factors discussed under the heading “Risk Factors” in our most recent report on Form 10-Q filed with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events.