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BAE Systems Rebrands Cyber-Security Business in Commercial Push

Jan. 16 (Bloomberg) -- BAE Systems Plc is rebranding its cyber-security operations as Europe’s largest defense company seeks to gain business from more companies beyond its traditional government customers.

Activities to protect computer networks will be called BAE Systems Applied Intelligence, replacing the Detica name as of Jan. 31, the London-based company said in a message to employees. “We are changing our name in January to closer align to the BAE Systems brand,” it said in a separate e-mail.

BAE acquired Detica Group Plc in 2008 for 531 million pounds ($868 million) to augment its more traditional combat-jet and naval-ship sales as militaries in the U.S. and Europe grew increasingly concerned about the security of their computer systems. Detica said last year it sees growing demand for its security services across industries.

“The single biggest issue that will hit organizations in 2014 will be the rise of digital criminality as fraud becomes increasingly cyber-enabled,” Martin Sutherland, Detica’s managing director, said in a statement last week. “We’ll see digital-savvy criminals using cyber and fraud techniques simultaneously to carry out far more complex crimes than ever before.”

BAE Systems Applied Intelligence’s target customers will include financial services and utility companies, as well as communications service providers.

BAE struck a five-year agreement last year with Vodafone Group Plc to help protect client information on mobile devices, and yesterday it announced a five-year deal with Canadian National Insurance Crime Services to help detect auto-insurance fraud.

Detica sales in the first six months of last year rose 9 percent from a year earlier, BAE said Aug. 1. Revenue for the cyber and intelligence group, where Detica contributed about 23 percent of sales, fell $112 million to $1 billion through mid-year even as profitability improved. In August, BAE forecast long-term double-digit growth in Detica sales.

Financial crime and compliance budgets are set to rise, Detica said Dec. 9. Almost half of respondents in a survey of 123 executives projected an increase in spending of as much as 20 percent in key areas, it said.

To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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