Security Watch | Matt Hines » Core finds new CEO

March 10, 2008 | Comments: (0)

Core finds new CEO

TAGS: Security

As expected, Core Security Technologies has found a new CEO, naming former Sophos executive Mark Hatton to guide its future expansion plans.

The Boston-based penetration testing company's efforts to recruit a new leader first surfaced last July when Core insiders confirmed that longtime CEO Paul Paget, who had held the role for over five years, was stepping aside as the firm moved into its next stage of development.

Market watchers said they expect Hatton -- who will absorb the titles of president and chief executive officer, and will also join the firm's board of directors -- to work aggressively to expand Core's sales, with the potential to position the company for sale or an IPO in several years' time.

Hatton previously served as the president of North American operations for AV vendor Sophos, which has been credited by some industry analysts for using its rapid malware signature downloads and customer support strengths to steal business away from larger rivals including Symantec and McAfee.

The new Core CEO served as vice president and general manager for U.S. operations at U.K.-based Sophos before becoming the company's top North American executive, and worked previously as vice president of worldwide sales for Tilion, a maker of supply chain management software. Prior to Tilion, Hatton held the post of vice president of North American field operations for EC Cubed, which sold electronic marketplace development tools.

Founded in 1996, Core currently claims over 600 customers, a roughly 25 percent increase since the beginning of calendar 2007, and has previously collected financial backing from Pegasus Capital and Morgan Stanley Venture Partners to the tune of $4.5 million apiece.

Analysts have said that Core's flagship technology, dubbed Impact -- a package of network, applications and social engineering vulnerability testing tools, remains a relatively unique commodity on the market, but will continue to compete against a number of other security testing applications for IT budget dollars.

Company officials have said since the initial announcement of Paget's impending departure that the move to bring in a new CEO was not aimed at facilitating a sale, but rather based on hopes of expanding on the company's existing opportunities as a standalone.

Hatton is credited with helping to lead Sophos during a period in which it significantly expanded its U.S. presence and made inroads with larger customers.

The executive said that he believes Core is ready to experience similar expansion.

"Core Security is already a market leader in the security assurance marketplace and is poised for considerable growth as we continue to demonstrate substantial value to customers worldwide," Hatton said in a statement. "I am excited to be joining the company at this important juncture and hope my experience will help take this already successful organization to the next level."

Posted by Matt Hines on March 10, 2008 10:23 AM

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