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Hitachi Systems acquires Above Security, a global IT security service provider in Canada

To accelerate global development of Hitachi’s managed security service and security consulting businesses

The information in this News Release (such as price, specifications, service contents, day of issue, contacts, and URLs) was current at the time the news release was issued.
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August 25, 2015
Hitachi Systems, Ltd.
Above Security Inc.

Tokyo, Japan and Montreal, Canada – August 25, 2015 – Hitachi Systems, Ltd. (“Hitachi Systems”), a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), and Above Security Inc., a global IT security service provider in Canada (“Above Security”), today announced that Hitachi Systems has decided to acquire Above Security and make Above Security a wholly owned subsidiary. The acquisition process will be completed in October.

Through this acquisition, Hitachi Systems will integrate the advantages of both companies and leverage the group companies in Japan and overseas to strengthen its managed security service business*1, and its security consulting business in Japan, North America, Europe, India and Southeast Asia.

*1
The aim of the managed security service is to provide prioritized security measures to customers, undertake the early detection of security incidents with security monitoring and examine problems using a security diagnosis system for the configuration servers and machines of the customers’ system by using the unified SOC (Security Operations Center) operation software.

Hitachi Group is promoting the social innovation business globally to address the challenges facing our society in general and our customers in particular by providing targeted solutions with a combination of products, services and IT.
IT systems, web services and data are becoming increasingly important in society. On the other hand, the exploitation of information and system failure caused by malignant attacks are occurring frequently, therefore increasing the need for security services. In addition, with the advent of the Internet of Things (IoT), connecting everything including social infrastructure and services such as electricity, gas and water to IT networks the importance of security is significantly increasing.

Hitachi Systems, as the core company addressing the Information & Telecommunication Systems Business of the Hitachi Group, is pursuing the enhancement and global development of its key “IT Security” business.

Above Security, is one of the world’s leading global managed security service providers with SOCs in Canada, Mexico and Switzerland, providing managed security services to customers in over 40 countries. Above Security delivers its services using high-performance, unified SOC operation software that it has developed in-house, and a security consulting practice that complies with the industries and legal standards and regulations as well as the company’s own security standards. In recent years, Above Security has been building up its business capabilities in Japan and Asia, expanding its business in Europe and strengthening its managed security service business as well as its security consulting business.

Thus, Hitachi Systems recently decided to acquire Above Security and make Above Security a wholly owned subsidiary. By combining the products, service engineering technologies and expertise as well as the business resources of the two companies, Hitachi Systems will be able to provide customers worldwide with more advanced and broader range of IT security services based on Above Security’s managed services and security consulting practice. Since Above Security has no customer base in Asia and Southern Europe, Hitachi Systems will seek to further expand the business by successively providing a global security service that will leverage the integration of the technology of the two companies, through the group companies of Hitachi Systems in India, Southeast Asia and Italy.

Hitachi Systems Group is focusing on a variety of measures to achieve fiscal year 2015 sales target of 500 billion yen and the 10% overseas sales ratio specified in the mid-term management plan. Through this acquisition, The Group will strengthen and expand its global business, and will be a step closer to accomplishing this objective.

Naoya Takahashi, President and CEO of Hitachi Systems, said that “We are very pleased to welcome Above Security to the Hitachi Systems Group. The security business is one of the most important IT services that will continue to grow in demand and complexity in the future. Hitachi Systems has the advantages of having built solid security service technology, knowhow and solutions such as Hitachi Systems SOC services that we have developed in Japan, and our business capability in Europe and Asia. By integrating these advantages with the global security services capacity, technology and knowhow of Above Security, we will create advanced IT services and actively provide them to companies across the globe.”

Ray Georges Chehata, President and CEO of Above Security, said that “We have started 18 months ago a global strategic growth plan to stay competitive in the actively consolidating IT security market. This process had led us to the acquisition of Seccuris last February. Now by joining the Hitachi Systems Group we have found a global partner that embraces our vision and will allow us to continue to run as a separate entity, while further enhancing our capability to continue to give our clients the highest level of services without compromising the values that made Above Security a successful and respected player globally.”

Outline of Above Security (as of the end of June 2015)

Company name Above Security Inc.
Year of establishment 1999
Headquarters Montreal, Quebec, Canada
Locations Canada, The United States of America, The Swiss Confederation and The United Mexican States
URL www.abovesecurity.com (open in new window)
Representative Ray Georges Chehata, President and CEO
Employees About 120 (consolidated)
Business lines Managed security service business, security consulting business

Outline of Hitachi Systems (as of the end of March 2015)

Company name Hitachi Systems, Ltd.
Year of establishment 1962
Headquarters Tokyo, Japan
URL www.hitachi-systems.com/eng/
Representative Naoya Takahashi, President and CEO
Net sales 430,377 million yen
(Fiscal year ended in March 2015, consolidated)
Employees 17,995 (consolidated)
Business lines System integration business
System operation, monitoring, and maintenance business
Network service business
Sale and development of information-related equipment and software

About Above Security

Founded in 1999, Above Security is a Global IT Security Service Provider who builds and delivers customized services for monitoring and protecting the most critical and sensitive IT assets in our clients’ infrastructures 24/7. Our mission is to make the Internet a safer place for all, to harness the full potential of connecting people and businesses together to build trust relationships that can be the catalyst of worry-free collaboration and limitless innovation.
Above Security caters to small and medium size businesses as well as Fortune 500 companies in important, highly-regulated industries – such as financial services and government – where the need to process or store considerable quantities of confidential data is paramount. From its four Security Operations Centers (SOCs) in Canada, Mexico and Switzerland, Above Security has accumulated experience guarding the systems of over 250 private and government-owned organizations in over 40 countries around the world.

About Hitachi Systems, Ltd.

Hitachi Systems, Ltd. is an IT services company with strengths in high-quality operations and maintenance services. Hitachi Systems works closely with customers through a network of roughly 300 service sites and contact centers across Japan, through which it offers a wide range of business system design and integration services, as well as outsourcing services that take advantage of its robust data center infrastructure. A leader since the dawn of the IT era in Japan, Hitachi Systems leverages its track record and expertise in IT services to offer one-stop services covering the entire IT life cycle – from system consulting to integration, installation, operation and maintenance. Hitachi Systems also pushes beyond the boundaries of IT to create new value for customers, with the aim of becoming a global service company to which customers can entrust any operation.
For details: https://www.hitachi-systems.com/eng/

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society’s challenges with our talented team and proven experience in global markets. The company’s consolidated revenues for fiscal 2014 (ended March 31, 2015) totaled 9,761 billion yen ($81.3 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes power & infrastructure systems, information & telecommunication systems, construction machinery, high functional materials & components, automotive systems, healthcare and others. For more information on Hitachi, please visit the company’s website at http://www.hitachi.com (open in new window).

Contacts

Canada:
Katharina Gerberding
Above Security Inc.
+1-450-434-8062
press@abovesecurity.com

Japan:
Osamu Sugiyama
Hitachi Systems, Ltd.
+81-3-5435-5002
press.we@ml.hitachi-systems.com

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Hitachi Systems provides true one-stop services covering all areas of the IT life cycle: from system consulting, to building, installation, operation, and maintenance.