KEYW – KEYW – To Acquire Sensage

Nasdaq:KEYW) is pleased to announce that it has entered into a definitive agreement to acquire Sensage, Inc., a privately held provider of advanced Security Information and Event Management (SIEM) and event data warehousing software solutions to enterprise and government customers. In addition to providing KEYW an expanded commercial market opportunity, this acquisition strategically supports Project G, our Cyber Awareness and Response Platform.

The Sensage SIEM solutions, technology and team will become an important part of a new generation of cyber awareness products and services that KEYW is preparing to launch. The transaction is expected to close in October 2012, subject to Sensage equity holder approval and other customary closing conditions.

“Sensage brings advanced cyber intelligence technology and an executive team with extensive commercial product experience that is highly relevant to bringing Project G to general availability early next year,” commented Leonard Moodispaw, CEO and President of KEYW Corporation. ”Cyber awareness begins with the ability to absorb and relate large quantities of cyber operations and security data within an enterprise. Today these data overwhelm most organizations’ capabilities to observe and respond to hostile activity within their network environments until it is too late. By joining forces, KEYW and Sensage will offer a new level of cyber awareness to both commercial and government markets.”

Sensage, headquartered in Redwood City, California, has delivered solutions to over 450 enterprise and government customers worldwide. Sensage’s patented technology provides optimized high-volume event collection, monitoring, analytics and reporting for large amounts of log data over indefinite periods of time. Sensage technology was recognized in May 2012 by Gartner, Inc. in the “Critical Capabilities for Security Information and Event Management” report.

“Sensage is thrilled to become part of the KEYW team, building out solutions that combine uniquely scalable technologies and advanced expertise to solve the most difficult security problems on the planet,” commented Joe Gottlieb, CEO of Sensage. ”Our work with proactive security teams in both commercial and government environments produces a fountain of sophisticated analytics and best practices that we share across all customers. KEYW’s Cyber Awareness and Response Platform will take all of this to the next level, integrating automated platforms on customers’ premises with cyber black belts in the cloud.”

“In my view, other recent SIEM acquisitions have resulted in a consolidation and commoditization of the SIEM market place that is evolutionary, at best,” said Richard Schaeffer, KEYW Advisory Board member and advisor to Sensage, cyber security expert, consultant and former Director of Information Assurance at the United States National Security Agency. “The combination of mission-grade experience and solutions from KEYW and big data analysis and commercial product expertise from Sensage is a refreshing and potentially disruptive move for the SIEM market, signaling that a much-needed next generation of solutions is on its way.”

Under the definitive agreement, KEYW will pay up to $18.0 million in cash and up to $16.5 million in KEYW common stock to the Sensage equity holders. $7.5 million of the stock and $3 million of the cash consideration is contingent upon Sensage meeting certain revenue targets for the second half of 2012.  KEYW expects the acquisition to be slightly accretive to KEYW’s Q4 2012 financial results, subject to final purchase price accounting.

About KEYW – KEYW

KEYW provides agile cyber superiority, cyber security, and geospatial intelligence solutions primarily for U.S. Government intelligence and defense customers. We create our solutions by combining our services and expertise with hardware, software, and proprietary technology to meet our customers’ requirements.

About Sensage

Sensage helps organizations collect, store, analyze and interpret complex information to identify new threats, improve cyber security defenses, and achieve industry and regulatory compliance.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.