GreyCastle Security, a cybersecurity consultant based in downtown Troy, New York, has been acquired by a government contractor out of Rome, New York.
Assured Information Security is acquiring GreyCastle in a combination of stock and cash deal. The acquisition will let GreyCastle accelerate growth and expand into new markets.
GreyCastle specializes in providing security assessment, incident response and education to businesses mostly in the Northeast. When hired by a client, GreyCastle identifies cybersecurity risks, conducts awareness training and helps them respond to security breaches and incidents.
AIS is a cybersecurity firm with more than 250 employees dedicated to the research and development of classified cyberwar technologies for the United States military and federal agencies.
The acquisition came after AIS was looking to build a commercial division within its company.
“They saw opportunity getting into private industry and along the way, ran into us,” said Reg Harnish, CEO and co-founder of GreyCastle. “Dan [Kalil of AIS] emailed me one day out of the blue and conversation started. He said that AIS would make a fantastic partner, they were already successful, and the resources they could bring would help accelerate our growth.”
Following the acquisition, Harnish will continue to be GreyCastle’s CEO with Kalil as chief strategy officer and chairman of the board, as well as AIS’s Mike Denz as CFO. GreyCastle Security will operate independently, keeping its brand and operations in Troy.
GreyCastle employs about 25 people between downtown Troy and Rochester. More than half of GreyCastle’s clients are located between Boston and Buffalo.
Harnish expects that footprint to grow in 2017.
Both AIS and GreyCastle are pursuing additional acquisitions for next year, with GreyCastle looking at two, possibly in Philadelphia or Boston.
“That’s aggressive,” Harnish said. “We’re looking at cybersecurity companies in $1 million to $2 million range with five to 10 employees. We’re hoping to expand into new geographies.”