Capgemini is gearing up to acquire Leidos Cyber, the commercial cybersecurity arm of Leidos. Capgemini believes the acquisition, slated to be closed by the end of 2018 will enable the company to expand its capabilities to North America for meeting the growing demand of cybersecurity services.

United States: Capgemini is gearing up to expand its cybersecurity business as it plans to acquire the commercial cybersecurity arm of Leidos, Leidos Cyber. The company aims to reinforce its capabilities in North America, to meet the growing customer demand of cybersecurity services. The transaction is expected to be closed by the latter half of 2018. 

The completion of the acquisition depends on anti-trust and Committee on Foreign Investment in the U.S.

Leidos Cyber, has around 10 years of experience in commercial cybersecurity business, and employs a team of almost 500 cybersecurity professionals. The company specializes in integrated offerings for cybersecurity and managed security services. 

The Chairman and CEO of Capgemini, in a statement commented that Leidos Cyber is the perfect fit to reinforce the company’s cybersecurity practice in North America as Leidos has been constantly defining the market in protecting the industrial control ecosystem for the mission critical infrastructure needs of global enterprises. The company believes the acquisition will aid in meeting the security requirements of its international client base.

The President of Leidos Civil Group in the statement said that the company’s decision to transition Leidos’ cybersecurity business to Capgemini is line with the company’s focus on providing solutions, including cyber, to its core markets like governments and highly regulated industries.

Leidos believes that the deal will open their security offerings up to a global market. The acquisition will not only allow the company to expand the North America cybersecurity practice but also add value to the global security provisions of Capgemini's global clients.

Leidos headquartered in Reston, Virginia is a defense firm and provides IT services, and systems integration, to large government clients such as the NSA, Department of Defense, as well as Homeland Security.

According to TechSci Research, the acquisition of Leidos Cyber by Capgemini is likely to enhance the business consulting firm's presence in North America. The deal is expected to generate enormous potential for the Global Cybersecurity Market in the coming years. Cybersecurity is a major concern in today’s world. The increasing cyber-attacks on the critical infrastructure has risked the worldwide security and therefore propelled the demand for cybersecurity measures globally. Implementation of strict government regulations along with augmented government as well as private sector spending towards ensuring cyber security is the need of the hour. This has fueled the need for advanced security solutions such as Next-Generation Firewall (NGFW), Unified Threat Management, Intrusion Detection System/Intrusion Prevention System, Security Information & Event Management. The Cyber Security Market is expected to witness robust growth in the coming years.

According to the recently published report by TechSci Research, “Global Cyber Security Market By Security Type (Network Security, Content Security, etc.), By Solutions (Identity & Access Management, Risk & Compliance Management, etc.), By End Use Industry, By Region, Competition Forecast and Opportunities, 2011-2021”, global market for cyber security is projected to surpass US$ 137 billion by 2021. Growing trend of Bring Your Own Device (BYOD), rising adoption of cloud computing, expanding market for Internet of Things (IoT) are expected to continue driving the cyber security market across the globe over the next five years. Though the global cyber security market is highly fragmented, Symantec Corporation emerged as the largest player in 2015, followed by BAE Systems PLC, Intel Corporation and Cisco Systems. Banking, Financial Services and Insurance (BFSI); IT & Telecom; defense; energy & power; retail; and healthcare have emerged as the key application areas where cyber security solutions are being increasingly adopted.

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