Falanx has established itself as a trusted advisor in the cyber security sector through the high-quality execution of its cyber services proposition, based on a methodology and set of processes that have been built up over many years, enabled by strong technology and experienced analysts. The Falanx Group offers an opportunity to invest directly in the growing cyber security market while gaining exposure to the benefits of M&A consolidation in a fragmented segment, led by an experienced team with a proven track record.
Growth in cyber security spend is forecast to hit $170bn globally by 2020 from an estimated $96bn in 2018. Robust spend, the introduction of more stringent data protection legislation and organisations’ growing focus on protecting themselves from increasing cyber threats underscore the growth dynamics to which the Falanx Group is exposed.
Falanx is one of the few UK listed cyber security firms that can directly offer its clients a comprehensive suite of cyber services driven by an understanding of a client’s maturity and ability to successfully absorb and implement a cyber framework. The Group’s services are enabled by its proprietary and 3rd party technologies, access to global intelligence and experienced cyber analysts. The Group has established itself as a trusted advisor, allowing it to sell more sophisticated services across its client base and building a recognisable brand in the cyber security market.
The cyber security landscape is a fragmented one which is ripe for consolidation. Having recognised this, the Falanx Group has implemented a clear and direct strategy of consolidation. Under the leadership of CEO Mike Read, the Group has identified a pipeline of targets which are straightforward to integrate, and which will allow the group to enhance and expand its existing portfolio of clients and services. This will facilitate cross selling of its more advanced managed detection and response services (MDR).
A brief summary of our near-term forecast may be viewed below with further detail starting on page 20 in the Financial section and a Financial summary on page 31.