AT&T Completes Sale of Cybersecurity Division to LevelBlue

AT&T has finalized the sale of its cybersecurity division, marking a pivotal moment in the company’s strategic realignment. The division has been transitioned into a new independent entity known as LevelBlue, backed by majority owner WillJam Ventures. This move sees LevelBlue emerge as a standalone managed cybersecurity services business with a global presence spanning 10 countries and boasting a workforce exceeding 1000 employees.

Speculation surrounding this sale surfaced in early 2023 amidst AT&T’s efforts to streamline operations and alleviate debt stemming from significant acquisitions, notably DirecTV and TimeWarner. LevelBlue inherits various components from AT&T’s cybersecurity portfolio, including the managed services business and assets obtained from the acquisition of AlienVault in 2018.

Robert McCullen, chairman and CEO of LevelBlue and founder of WillJam Ventures, emphasized the collaborative dynamic with AT&T, framing the telecommunications giant as an “alliance partner.” McCullen underscored the joint venture’s commitment to customer-centric cybersecurity solutions, leveraging investments in technology and personnel.

The transition process is critical given LevelBlue’s extensive clientele, which includes major U.S. corporations, government entities, and Fortune 1000 companies. McCullen reassured stakeholders of a seamless migration strategy, leveraging existing systems to ensure continuity of service.

LevelBlue’s newfound autonomy empowers it to collaborate with a broader spectrum of operators while aligning with AT&T’s network-embedded security vision. The company is poised to integrate leading products from vendors like Fortinet, Palo Alto Networks, and Cisco, augmenting its offerings to cater to diverse business requirements.

Furthermore, LevelBlue’s internal research arm, Blue Labs, will spearhead innovative developments in threat intelligence, artificial intelligence (AI), and machine learning (ML). McCullen emphasized the company’s commitment to expanding these capabilities through strategic partnerships and potential acquisitions.

AT&T’s executive vice president, Rick Welday, characterized the launch of LevelBlue as a “significant milestone,” reflecting a dual focus on combatting cyber threats and fostering innovation in the cybersecurity landscape.