Byres Security Joins Belden
Effective Sept 1, 2011 Byres Security Inc. (BSI) has been acquired by Belden Inc.
(Note: effective Jan 1, 2012 Byres Security Inc. is doing business as Tofino Security.)
Belden Inc. (NYSE: BDC), is a global leader in signal transmission solutions for mission critical applications. It acquired BSI to enhance its ability to protect industrial automation systems from cyber attack.
BSI’s award winning Tofino™ Security product line will strengthen Belden’s leadership in industrial networking solutions, and the deal will lead to higher investment in Tofino Security technology. The result will be enhanced cyber security for critical industrial automation systems.
The following questions and answers explain the acquisition in more detail.
Why did BSI decide to join Belden?
BSI has been working with the Hirschmann group in Belden for about two years. Both a strong working relationship and successful technology integration has resulted from these efforts.
Belden is already using Tofino Security technology in its Eagle line of security products, and BSI use Belden’s Hirschmann hardware in many of its Tofino Security products.
Thus, there is good synergy between the companies’ technologies and capabilities, and, as part of the same organization they aim to achieve leadership in both industrial networking and industrial security.
BSI also sees value in being part of a company with significant name recognition in the industrial automation market.
Joann Byres, VP and General Manager, Byres Security:
“The deal is beneficial to us because it provides financial and organizational support for realizing the market potential of Tofino Security technology. The industrial control system security market is growing quickly, and now, as part of Belden we will be able to truly seize the opportunity.”
Eric Byres, CTO and VP Engineering, Byres Security:
“Industrial Control System and SCADA operators have experienced a wake-up call over the last year with a large number of PLC vulnerabilities disclosed and with the Stuxnet cyber attack. There is now high interest in improving cyber security at both the plant and management levels of organizations.”
“As part of Belden we will be able to fully realize the potential of Tofino Security technology and make our vision of robust security tailored for industrial requirements a reality in many, many sites around the world. This is a terrific opportunity and we look forward to joining Belden and making it happen.”
For more comments from Eric and Joann see the blog article:
Byres Security Acquired by Belden: Message from the Founders
What is Belden’s perspective on the deal?
Peter Fröhlich, Ph.D., Director R&D for Belden’s industrial networking business:
“BSI is a leading provider of industrial control system security and their Tofino Security technology will strengthen Belden’s position as the world's leading provider of complete industrial networking solutions. As an independent business entity within Belden, BSI will continue its growth and success and contribute to our vision of delivering secure communications to mission critical networking solutions."
“We already use BSI’s technology in our EAGLE line of security products and intend to leverage it across our entire industrial networking product portfolio, particularly the Hirschmann and GarrettCom industrial network products.”
“This will also include embedded offerings, providing customers with “Secured by Tofino” inside their networking and automation equipment. BSI will also expand its industrial security product portfolio with a greater range of hardware platforms.”
What is the opportunity with the industrial security technology market?
David W. Humphrey, Director of European Research, ARC Advisory Group:
"The dynamic nature and growing consciousness of cyber security in industrial applications will drive steady growth in the ICS cyber security market for the foreseeable future."
"ARC's research shows that spending on IT security for industrial control systems is still only about half the level of security spending for total corporate IT, even though awareness of cyber security in manufacturing industries has grown rapidly in the last decade, suggesting that there is still plenty of room for growth."
An indicator of growth for the industrial security technology market is provided by the Pike Research 3Q, 2011 Report that states that Industrial Control System (ICS) Security revenues for the SMARTGrid sector will grow at a CAGR* of 12.2% between 2011 and 2018.
*Compound Annual Growth Rate
How does the acquisition affect the Byres Security organization and team?
Byres Security will operate as an independent business unit under Belden, and the Tofino Security brand will remain the same. BSI’s founders, Joann Byres and Eric Byres are committed to playing key roles in the new entity, and there will be no changes to BSI’s experienced and successful team.
What are Joann Byres’ and Eric Byres’ roles? What is their commitment to Belden?
Joann and Eric are continuing on in roles similar to their roles since founding BSI.
Joann’s new title is: VP and General Manager, Byres Security
Eric’s new title is: CTO and VP Engineering, Byres Security
Both Eric and Joann have made a long-term commitment to lead BSI.
What happens to BSI's partnership with MTL Instruments?
MTL Instruments, and its parent company, Cooper Industries, support BSI’s deal with Belden.
BSI and MTL Instruments (MTL) have recently signed a long-term agreement to provide MTL with Tofino Security technology.
Thus, the existing MTL Tofino Security product line continues to be fully supported and new products are being actively developed.
BSI is committed to continuing to work with MTL to help them achieve success with Tofino Security products.
The same commitment extends to MTL’s Tofino Certified VARs and to MTL’s OEM accounts.
How does the deal affect Tofino Security OEMs, Tofino Certified VARs and Tofino Certified SI’s?
Existing Tofino Security OEM, Certified VAR and Certified SI relationships will remain intact and valued. Tofino Security partners will play an important role in the new phase of business growth enabled by the Belden acquisition. Growth will include recruiting additional OEMs, VARs and SIs for new territories and industries.
How will Belden's acquisition of BSI benefit Tofino Security customers?
Existing products will continue to be actively developed and supported. In addition, the deal will result in an increased investment in R&D and product development for Tofino Security products.
Tofino Security technology will be incorporated into Belden’s industrial networking and automation products, including embedded products (“Security by Tofino”). Plus, the BSI product line will be expanded to include a wider range of hardware platforms.
BSI believes that the result will be better cyber security protection for their customers’ ICS and SCADA systems.
If you still have questions, please contact us:
|Joann Byres||Belden Investor Relations|
Byres Security Inc.
+1 250 390 1333