Australian private equity firm Quadrant takes stakes in three Wellington cybersecurity firms, plans rollup

Quadrant Private Equity (QPE) has invested in three local cybersecurity firms. Photo / Mark Mitchell

Sydney-based Quadrant Private Equity (QPE) has invested in three local cybersecurity firms as part of a roll-up.

All are based in Wellington. Each was owned by its founder before the deal.

And all three offer services that include risk assessment and penetration testing - or gauging if an organisation’s cyber defences are up to snuff, from its technology to its potentially gullible staff.

They are ZX Security, owned by Simon Howard - best known as the organisor of the well-regarded “Kiwi Con”, a well-regarded annual gathering of hackers that ran for a decade to 2018 - Helix Security, founded by Sam Andrews (a former head of IT security for the Department of Corrections before he formed his own company in 2016) and Quantum Security Services, founded by industry veteran Eugene Gibney.

“QPE acquired a stake in each of the businesses and are looking forward to partnering with the founders,” investment director Louise Haslehurst told the Herald.

The three firms will be rolled up into a group, with QPE’s Haslehurst and QPE managing partner Simon Pither on its board. The founders will stay on. Expansion rather than rationalisation is promised.

The three businesses will continue to operate as separate brands, with separate management teams under a single holding parent entity.

None of the parties disclosed terms, but the Herald understands QPE aims to make investments in A$40 million with its latest fund, the A$530m Growth Fund 2.

The trio of firms have a combined 120 staff and more than 200 corporate and government customers.

Their collective revenue has grown by more than 35 per cent per year over the past three years in a world that’s been grappling with escalating online threats.

Howard declined questions, and Andrews and Gibney could not be immediately reached for comment.

But pre-canned statements were released via QPE.

Howard said, “We are already receiving inbound interest from domestic and international customers based on our technical capabilities and this partnership means we can continue to grow throughout New Zealand, Australia, and other international markets.”