ENIGMA to Acquire IOT Security Provider Dellfer, Continuing Rapid Expansion of Its Zero Trust Cybersecurity Platform

Second acquisition in six months is part of larger acquisition plans for the next generation platform by cybersecurity private equity firm Option3. All-stock deal would make early backer DENSO, the world's #2 automotive parts supplier, a large shareholder in ENIGMA.

NEW YORK, Jan. 22, 2025 /PRNewswire/ -- Option3, a cybersecurity private equity specialist with a deep heritage in U.S. national security, today announced ENIGMA's agreement to acquire Dellfer Inc., a pioneering firmware security company serving the automotive and broader Internet of Things (IoT) markets. The transaction comes months after ENIGMA's acquisition of Onclave Networks in August 2024 and represents a significant expansion of the Platform's capabilities. It also initiates a process of product integration, aiding both companies' enterprise sales efforts that are already in progress, and lays the groundwork for Option3's future acquisition plans for the Platform.

Structured as an all-stock transaction, Dellfer shareholders, including DENSO Corporation of Japan, will join ENIGMA's expanding investor base. Over the past few years, DENSO—a member of the Toyota Group and a global leader in advanced mobility technologies—has collaborated with Dellfer to pioneer cybersecurity solutions in the automotive sector. With this acquisition, DENSO will become one of ENIGMA's largest shareholders and gain the ability to tap into the platform's growing suite of advanced cybersecurity solutions.

"We are very excited about this addition to the ENIGMA platform," said Manish Thakur, Managing Partner of Option3. "Dellfer will continue its leadership in the automotive sector, building on years of successful development work that allow it to deliver security to the mass market, a critical enabler in an industry where software-enabled connected cars are becoming the norm. As part of ENIGMA, though, Dellfer is also now positioned to enter other sectors, from healthcare to government. Its integration with Onclave will further create a powerful force multiplier in capabilities that will substantially enrich our solution set for customers."

"Joining ENIGMA is an exciting new chapter," said James Blaisdell, CEO of Dellfer. "Dellfer's expertise in firmware security for large IoT deployments complements Onclave's strengths in Operational Technology and critical infrastructure. Together, we address rapidly multiplying security threats originating from outside of traditional Information Technology and are largely missed by traditional cybersecurity."

This second acquisition within six months underscores both the platform's rapid growth and its position as a transformative player in cybersecurity, thanks to its exclusive focus on solutions rooted in the "Zero Trust" model. Zero Trust has become a stringent standard in cybersecurity, mandated for adoption across U.S. government agencies by Presidential Order. Last year, Onclave Networks became the first Zero Trust secure communications platform to receive an "Authority to Operate" from a U.S. Government agency.  With plans for continued growth, Option3 recently brought on Bloomberg's former General Counsel, Karl P. Kilb III, as Operating Partner and the platform's Chief Strategy Officer. Kilb will spearhead both the acquisition strategy and help finalize several large enterprise sales and licensing deals that ENIGMA expects to announce soon.

"The addition of Dellfer marks a significant expansion in ENIGMA's mission to deliver a comprehensive range of advanced Zero Trust solutions," said Kilb. "Both companies are advancing AI capabilities to enhance threat detection, monitoring, and automated remediation. Both companies are also in late-stage discussions for major sales and  licensing deals. Bringing them together under a single platform will amplify what each can offer, ultimately benefiting customers seeking robust cybersecurity solutions."

Option3's rapid but targeted expansion of the ENIGMA platform reflects its larger vision of an integrated ecosystem of advanced technologies that specifically address a new generation of AI-driven cyber-attacks. "We will bring on to the platform only those solutions that go beyond traditional 'trust but verify' cybersecurity and instead treat all networks and traffic as a potential threat" continued Thakur. "In adopting this exclusively Zero Trust approach, Option3 and ENIGMA aim to both support the U.S. government in own transition to Zero Trust, and to accelerate its broader adoption across the American economy."

The acquisition of Dellfer is expected to close by the end of Q1 2025, subject to customary closing conditions.

About ENIGMA

Option3 ENIGMA is a next-generation American cybersecurity platform focused on protecting against threats arising from beyond traditional Information Technology, especially in Operational Technology and Internet of Things environments. All ENIGMA solutions are exclusively based on Zero Trust, a security paradigm that treats every user, device, and component as untrusted—whether inside or outside the network. The platform originated from investments by cyber-focused private equity firm Option3. ENIGMA launched in August 2024 with the foundational acquisition of Onclave Networks, which applies Zero Trust principles and methods initially developed by the U.S. Department of Defense. Onclave recently received the first-ever Authority to Operate (conditional) from a federal agency for Zero Trust architecture and is deploying its solutions at the White House Communications Agency, the Defense Health Agency, NATO, and various U.S. hospital networks.

About Dellfer

Dellfer is an IoT cybersecurity software company that empowers device manufacturers to embed protection against unknown threats and prevent intrusions with unmatched visibility, speed, and accuracy. Its holistic cybersecurity approach helps efficiently secure IoT devices from becoming vectors of attack. Dellfer's proven solution detects and defends against zero-day attacks by continuously monitoring Control Flow Integrity, providing unparalleled visibility and resilience for everything from national security and defense systems to commercial and consumer devices.

About Option3

Option3 is a specialized cybersecurity private equity firm headquartered in New York and Reston, Virginia. The firm merges insights from the classified realm of U.S. national security with decades of experience in private investing, capital markets, technology development, and M&A. Since 2016, Option3 has invested in a range of cutting-edge companies across the cyber ecosystem, with a particular focus on threat intelligence, operational technology, and Zero Trust. Option3 takes control positions in mid-market companies, scaling them into future industry leaders. Its investment strategy is guided by a seasoned Technology Board, featuring experts such as former CIOs of the CIA and the Department of Defense, and a Capital Board comprising leading financiers. Option3 also operates its Cyber TRUST™ index, one of the only equity indices composed purely of cybersecurity companies. For more information, please visit www.option3.com.

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SOURCE Option3