Vodafone NZ buys majority stake in cybersecurity firm Defend

Cybersecurity is a fast-growing areas for telcos. Image / 123rf

Vodafone NZ has moved to bolster its cybersecurity capability by taking a 60 per cent stake in one of its service partners, Auckland-based Defend.

The telco would not put a value on the deal, but a spokeswoman said Defend has around 100 staff.

Before the deal, Defend was owned 50 per cent by its CEO Nigel Everett (a former general manager at Datacom) and 50 per cent by its chief cybersecurity architect Wenzel Huettner (whose former roles include GM, network security for Datacom and network and security services manager for national grid operator Transpower).

Cybersecurity is a growth area for telcos as businesses accelerate their move to the cloud amid the pandemic craze for remote working.

At its half-year result earlier this week, Spark said it expected 5 to 8 per cent growth in its cloud operation, which includes security services (the unit grew revenue 3.2 per cent to $224 million in the first half).

"Defend is a hugely impressive player in the cybersecurity market, and by coupling their innovation and talent with the resources of Vodafone New Zealand, we will offer New Zealand businesses a one-stop shop for cyber, network, and operational security," Vodafone NZ enterprise director Lindsay Zwart said.

"The investment in Defend represents a continuation of Vodafone's commitment to the needs of our business customers. Cyber crime is a growing threat, and as New Zealand businesses continue to adopt new technologies, the partnership provides both Defend and Vodafone NZ customers, increased capability and capacity to drive cyber resilience."

Defend was founded in 2017 and has received multiple awards including ISANZ Cyber Security Start-up of the Year 2018, ISANZ 2019 Company of the Year and was Microsoft New Zealand Partner Awards winner 2020 for Modern Work & Security and 2021 for Security.