Cyber due diligence for M&A transaction
Client need
Cybersecurity due diligence as part of the M&A process
Halon AB aimed to strengthen its position as a global leader in Composable Email Infrastructure by acquiring Eleven cyber security GmbH. Halon is backed by Intera Partners Oy, a long-term client of Fraktal.
Eleven cyber security GmbH, founded in 2002 and headquartered in Berlin, is a pioneer in email security. The company is trusted by Germany's largest internet service providers and secures over half of the country's consumer email traffic.
For Intera and their portfolio company Halon, a comprehensive Cyber DD process was essential to ensure the acquisition met the highest standards of security, operational integrity, and long-term resiliency.
We delivered
Cyber due diligence process
Fraktal supported the clients throughout the transaction with deep Cyber DD expertise. The process included a dedicated, on-site Cyber Security Q&A session, a series of online workshops, and structured assessments across technology, processes and governance.
Both sides of the transaction brought a strong, shared understanding of cybersecurity spanning technology, culture, values, and expectations. Our work extended beyond identifying risks and management practices. We provided a detailed assessment, tailored to the complexity of this strategic acquisition.
Reporting the findings
We presented the results through a series of workshops in a clear and structured format, highlighting key risks and strengths. Our recommendations included practical next steps that the client could implement immediately after the acquisition to strengthen security and ensure a smooth transition.
Our recommendations were structured into three tracks: pre-signing actions, tasks to be completed before signing and closing, and post-closing roadmap items supporting joint security objectives.
A formal assessment report was also shared with insurers and bankers under release letters.
Our approach
Cyber DD methodology
Our approach followed established Cyber DD methodologies, ensuring a structured and objective evaluation of the organization's cyber security posture. This consistency ensured quality and clarity of findings and recommendations throughout the assessment.
Penetration testing
We performed targeted penetration tests against selected high-risk, client-facing applications. Identified vulnerabilities were promptly addressed by Eleven, which now maintains a clear and actionable developer to-do list.
Open source intelligence
We analyzed publicly available information about the organization, its infrastructure, and digital footprint. This included exposed domains and services, leaked data, and other visible risks that may impact the acquisition.
Secure software development analysis
We reviewed selected parts of the codebase using controlled analyzer tool runs and shared-screen sessions with developers. We also provided advice on secure software development practices.
Identity management reviews
We assessed the identity management practices and solutions across on-premises systems, cloud environments, and internal IT services. Properly governed identities are critical foundations for secure operations, especially during and after integration.
Why this matters
Confidence for stakeholders
The due diligence gave both Halon and its investors at Intera confidence that Eleven's infrastructure, processes, and security posture meet the requirements for a strategic, secure acquisition.
Immediate action plan
The structured action plan allowed both companies to hit the ground running: immediate risk mitigation, smooth integration, and a joint roadmap for strengthening security post-closing.
Transparency for deal closure
The work also provided transparency to insurers and financial stakeholders, a key component for deal closure in M&A transactions.