Plano is getting a new cybersecurity business – one that already has more than $100 million in revenue.
After operating as an autonomous value-added resale (VAR) unit within cybersecurity firm Critical Start since the company was founded in 2012, the company is spinning out the business into the independent CyberOne.
“Cybersecurity needs of our customers are always evolving, so the ability to work with customers and vendors beyond the… region is the natural next step,” said Ric Hughey, CyberOne president, in a statement.
The move will see CyberOne act as a cybersecurity advisory and solutions company, while continuing to focus on its VAR business. In an email, Hughey said the move will alleviate market confusion and channel conflicts, making geographic expansion easier. He added that the company has seen more adoption of cloud and other cybersecurity technology amid the rise in remote work.
CyberOne has been focused on areas in Texas, Oklahoma, Louisiana and Arkansas. It will be looking to expand that reach next year, with Hughey hinting at potential new investments to fuel that growth.
According to Joe Panettieri, an angel investor and editorial director of the publication MSSP Alert, a number of managed detection and response (MDR) and managed security service providers – like Critical Start – have been spinning off business units. He notes that in addition to providing more flexibility for CyberOne, the move could potentially signal Critical Start’s business is focusing more on monthly recurring revenue, which typically gives businesses a higher valuation. He notes it could also mean Critical Start is looking to increase its “pure-play focus on a particular market niche.”
CyberOne’s headquarters will be located at 6851 Communications Pkwy. in Plano. Currently, the company has about 60 employees, which made up the core VAR business within Critical Start. Hughey said CyberOne expects to need to double its headcount over the next year to meet its expansion goals.
“This has been a long-standing request from those vendors, and we're happy to see that coming to fruition,” said Tera Davis, managing director at CyberOne, in a statement.
Per its website, CyberOne’s leadership consists of Hughey, former VP of sales at Critical Start, Davis, and VP of Professional Services Sanjay Parikh.
Critical Start was founded nearly a decade ago by CEO Rob Davis. In 2018, it made its first acquisition of the security analytics platform Advanced Threat Analytics for an undisclosed amount. That same year, with its MDR business seeing 300% year-to-date growth at the time, Critical Start moved into a new Plano headquarters, bringing its footprint from 3,000 square feet to 15,000 square feet. The next year, fueled by a $40 million investment from New York PE firm Bregal Sagemount, the company opened offices in Los Angeles and New York, adding to the 14 other markets Critical Start operates in.
