Liberty Strategic Capital, the private equity firm of former U.S. Treasury Secretary Steven Mnuchin, has purchased a significant stake in a mobile security company. The firm’s website states that its focus is on investing in “dynamic” tech companies.
Mnuchin acquired the controlling stake of mobile security startup, Zimperium, after paying a premium of $525 million, according to U.S. News. In the past, Zimperium has been supported by other big names such as Samsung, Warburg Pincus, SoftBank, and Sierra Ventures.
According to TechCrunch, under the new deal’s terms, Japan-based company SoftBank will continue to hold a minority share in the company. Mnuchin will serve on Zimperium’s board of directors.
Zimperium, a small company of seventy-two employees founded in 2010, is a Dallas-based company that markets itself as “a global leader in mobile device and app security, offering real-time, on-device protection against both known and unknown threats on Android, iOS, and Chromebook endpoints.”
During Mnuchin’s service as the Trump administration’s Treasury Secretary, Mnuchin was tasked with securing the national financial systems from possible threats, including cyberattacks. Mnuchin, a former member of the National Security Council, stated that he feels mobile devices are a valuable target for attackers because they are ingrained into everyday life and collect a multitude of personal data.
Mnuchin made it clear in a statement reported by CRN that threats to mobile devices are imminent and continue to grow in concern and that Zimperium has proven itself as a worthy contender in a multi-billion dollar mobile security market.
Zimperium covers three significant aspects of mobile security: device security, applications security, and mobile threat intelligence.
The mobile security company created a patented malware mobile threat detection system called the z9 machine. It operates silently in the background of mobile devices and monitors the daily behavior of the device. If a deviation in behavior occurs, it warns the user of a potential threat but also goes deeper to pinpoint who, when, where, and how.
Zimperium CEO Shridhar Mittal feels that Mnuchin’s investment in the company will help Zimperium’s overall growth plan. In an interview with CRN, he stated that Mnuchin was an asset due to his insight and exposure to the public sector and cybersecurity services. Mnuchin’s experience and monetary investment will help propel further development and allow the company to invest in marketing its brand.
According to U.S. News, Zimperium showed 53% growth in its revenue last year, aided in part by COVID-19. The pandemic caused a surge in remote workers, creating a further need for secure mobile access to company files and data. Zimperium was poised to fill that need. Its high-level clientele includes the U.S. Department of Defense and JP Morgan Chase.
Zimperium is Liberty Strategic Capital’s first acquisition since the firm opened in 2019.