Drake Resources, a global asset company, has announced a deal to acquire an Israeli-based cyber company as the business looks to move into cyber insurance and risk.
The deal, worth $11 million, will see Drake acquire Genome Technologies, a cyber-risk governance security solution company which aims to reduce cyber risk from human factors –currently a gap in the market according to Drake.
“Both Drake and Genome have now successfully completed a very detailed and comprehensive Due Diligence process,” a Drake statement said.
“It is now complete and all parties are satisfied that the process has been successfully concluded.
“Drake and Genome recently held discussions with representatives of an Australian State government, and agencies supporting these governments, with regard to the commercial development of Genome’s human cyber-risk governance solution.
“These discussions confirmed that the Genome cyber-risk solution satisfies an unresolved need to monitor, report and mitigate the human risk factor in organisations relating to innocent employees.”
The business also revealed that they have held early talks to distribute Genome products with other companies.
“A leading Australian Risk Management consultancy that designs the processes and systems to integrate risk into an organisation’s specific and tactical objectives, has expressed interest to market and distribute the Genome solution,” the statement continued.
“The conversation with the consultancy, which works with in 20 multinational companies employing multiple million employees, is at an early stage.”
Technology used by Genome helps map and identify each employee’s risk level from a cyber perspective providing customised mitigation and training solutions to help reduce risk.
“Genome has already signed a Letter of Intent (LoI) with a number of leading global organisations in the insurance, accounting and telecommunications industries, including Howden Broking Group and BDO South Africa,” the statement said.
Shay Simkin, CEO of Howden Broking Group Israel and head of its Global Cyber Practice, told news.com.au
that Genome provides a different perspective on a booming market.
“The solution that Genome has is that rather than just looking at outside risks, the company is looking at inside risks as well,” Simkin said.
“We now know that the inside risk is one of the most problematic risks that we are facing today, because employees are becoming more connected and more dependent on outside devices.
“I see Genome as being an insurance enabler. In the same way that people buy burglar alarms to reduce their insurance premiums, so too will people buy products like genome to not only protect their business but reduce the risk that they have.”
Cyber insurance needs to keep up with evolving threat landscape
Australia ‘needs to build a cyber militia,’ says cyber expert
to prioritise cyber resilience