After relocating its headquarters to Albuquerque from India, Cyber Security Works Inc. is boosting its capabilities — and workforce — with the acquisition of CYR3CON IP.
CYR3CON uses machine learning to analyze digital threats and risk. Aaron Sandeen, CEO of Cyber Security Works, told Business First that the deal closed in January before being announced on March 15. He declined to disclose financial details and said that Tempe, Arizona, based CYR3CON will stay put.
"This is a whole new platform of capabilities," Sandeen said.
The acquisition adds about 27 people to CSW's roster and came after an expansion into a bigger office space at 2440 Louisiana Blvd. in Uptown Albuquerque at the end of last year.
"We're continuing to hire and grow in New Mexico," Sandeen said.
CSW has about a dozen workers in New Mexico. It has eight open positions and hiring in New Mexico is a priority, he said.
Since July 2021, the company has been approved for more than $1.1 million in New Mexico Job Training Incentive Program money, including one award for 30 positions, according to the New Mexico Economic Development Department. One EDD document, an analysis of the JTIP request for funding from January, says CSW "has plans to significantly expand its business focusing on cloud optimization, application penetration testing and risk-based vulnerability management services."
In total, CSW now employs more than 185 people with offices in Albuquerque and Chennai, India, where it used to be based. For Sandeen's part, he previouslycofounded Zuggand Inc., a technology consultancy in Arizona that merged with CSW in July 2021, making him CEO.
For CYR3CON, the deal represents a successful exit from the startup world. Less than two years ago, the Tempe, Arizona, startup announced an $8.2 million funding round which followed an earlier $1.5 million seed round. In 2018, the Phoenix Business Journal reported that CEO and co-founder Paulo Shakarian said CYR3CON works with Fortune 500 companies.
The original idea behind CYR3CON was reportedly fostered more years ago when Shakarian and his wife, a former ASU research scientist and Cyr3con co-founder and CTO Jana Shakarian, worked on an Air Force project to ward off cyberattacks with artificial intelligence. In 2016, the company was incorporated with sales beginning the next year, the Phoenix Business Journal reported.
This isn't the first time in the past year consolidation has affected a local cybersecurity company. In July, Albuquerque cybersecurity firm RiskSense was acquired by Ivanti in what CEO Srinivas Mukkamala said was "probably one of the largest private deals in New Mexico."
A previous version of this article incorrectly identified Aaron Sandeen's first name. The article has been updated.
