Aleron acquisition boosts EY's cybersecurity offering

EY has bolstered its cyber security capabilities through the acquisition of Sydney-based Aleron. The deal sees a team of around 40 professionals join the Big Four accounting and advisory firm’s ranks. 

Mark Wroniak and Alex Morkos, the co-founders of Aleron, will join EY as a partner. The duo established Aleron in Sydney in 2010, with the objective of developing creative cyber security solutions for clients across Australia. Services offered by the firm include IT security, cloud security as well as big data expertise.

EY will now benefit from the firm’s expertise in the cybersecurity domain, as it looks to tap into rapidly growing demand for security services on the back of mounting cyber risks. Recent reports have revealed that Australian businesses are increasingly weary of cyber risks, particularly as a growing share of their operations moves to the digital sphere.

Businesses are turning to the professional services world to help shore up their cyber security frameworks, and the consulting industry has responded swiftly. A number of advisory firms have been ramping up their cyber security offerings, while new firms are also emerging to offer competition.

Earlier this year, Accenture acquired cybersecurity firm BCT Solutions to develop capacity in the field. Just last month, private equity firm BGH Capital merged the operations of twelve cyber security firms in Australia to form one cyber security solutions firm named CyberCX. The new entity has a staff of 400 professionals across 10 offices in the country.

Anthony Robinson, EY’s Cyber Security Lead for the Oceania region claimed that EY’s acquisition of Aleron makes it the largest of the Big Four in the cybersecurity arena. “EY has the largest cybersecurity division of the Big Four firms with more than 300 dedicated cyber security professionals, which demonstrates our commitment to meeting rising client demand for cyber operations,” he said.

“The acquisition of Aleron will build on our capability to deliver end-to-end cyber resilience for clients as they embrace new and disruptive technologies such as cloud, robotics and internet of things,” he added.

Alongside adding to its consulting and execution offerings, Aleron’s eDNA platform enhances EY’s solutions capacity. eDNA is an integrated IT security platform that provides companies with an overview of their IT operations in real time, highlighting areas that require immediate attention and enhancement to prevent vulnerability. EY will now be able to leverage its global strength to distribute the platform globally.

The move is part of EY’s strategy to beef up its digital capabilities, with digital-driven business now accounting for more than one third of all work in Australia’s $US5.8 billion consulting industry. M&A has been instrumental in the firm’s push, said EY Oceania CEO Tony Johnson.

“Over the past 12 months we have strengthened our SAP integration capability with the acquisition of Plaut, bolstered our digital consulting services with the addition of Adelphi, and acquired innovative economic modelling automation technology with our Cadence acquisition. We will continue to invest in digital skills and intellectual property to meet the growing needs of our clients.”

Newly appointed EY partner Wronia lent optimism to the new chapter, he said “We look forward to working with the team at EY to expand our services and we are excited to be a part of a global rollout of our locally developed eDNA tool.”