Bregal Milestone has launched CyberSentriq, a purpose-built platform aimed at Managed Service Providers. The platform is a merger of the company’s Redstor, a company already owned by Bregal Milestone and TitanHQ, a recent acquisition for an undisclosed amount.
The company has set a strong revenue target for the new company of $100 million in Annual Recurring Revenue (ARR) by 2028. It says that will come through a mix of organic and inorganic growth strategies. That implies we should expect further acquisitions as part of that inorganic growth.
James Griffin, CEO of CyberSentriq, stated, “We’re setting a new standard for MSP-first cybersecurity. MSPs safeguarding the critical SMB economy are underserved and have been let down by vendors out of touch with their day-to-day needs.
“CyberSentriq changes that. By uniting two key companies known for technology and service excellence, we’re giving MSPs exactly what they need – comprehensive protection without compromising quality, partnership, or performance.”
What is the plan for CyberSentriq?
In the announcement, Bregal Milestone declined to provide details on how it was going to integrate Redstor and TitanHQ. Looking at the websites for the two businesses, there appears to be little to no overlap between their product portfolios.
Redstor is focused on backup and recovery, both on-premises and on Microsoft Azure. It supports Windows, macOS and Linux endpoints and delivers security support with Microsoft Entra ID.
TitanHQ is a more traditional security company. It offers anti-phishing and anti-spam technology, as well as DNS filtering, email archiving, and encryption.
With little overlap, creating a single platform could be relatively simple. Redstor already has a platform, so TitanHQ products will likely be integrated into that. How long that will take and the impact on the codebase remains to be seen.
Both companies’ staff will have questions about job security, and customers will want to be certain there is no impact on customer service. Both companies already service the MSP, financial services, and education markets. What does that mean in terms of overlap and likely upsell for MSPs?
Other areas, such as SMBs, legal and hotels, show no overlap. MSPs supporting those customers will want to understand what the long-term support is there.
It is also unclear how much overlap there is in the MSP market between the two companies. The release says that CyberSentriq will have over 3,000 MSPs who support more than 150,000 SMBs globally.
Is the ARR target dependent on cross-selling into the two customer bases? Also, how will the new platform be priced? The latter will be crucial to keeping the MSPs it currently has and their ability to sell to their customers. They will not want to see an increase in costs in a market that is already under pricing pressure.
Enterprise Times: What does this mean?
There is significant competition in the MSP market at the moment. Bringing two portfolio companies together to create a new business in CyberSentriq makes sense. It creates a larger and more powerful entity that can look to address bigger MSPs with an expanded portfolio of products.
What is unclear, given the lack of detail on the current ARR for Redstor and TitanHQ, is how aggressive that $100 million by 2028 is. There is also no mention of funds being provided to expand sales teams globally or for the development of new products. All mergers create temporary hiccups in R&D while the focus is on integration. It will be interesting to see how this move impacts existing product development plans.
