CEOs and portfolio companies: Terry Jost
The candidate and the marketplace opportunity
Through a series of recommendations from colleagues and industry leaders, Terry Jost came to Akoya Capital with the conviction that enterprise-wide information security and identity management was becoming a mission-critical corporate issue on the scale of Sarbanes-Oxley and Y2K. Further, Jost believed emerging regulatory and other requirements had fueled the market’s desire for full lifecycle identity and access management (IAM) and IT security options.
Identity management (IdM) solutions ensure users have access to appropriate information in a manner that protects business value, complies with regulatory requirements and — most important — helps assure the integrity of individuals' online data.
Jost's vision was to build upon an existing consultancy platform to create an organization that could address the market's desire for full lifecycle identity and access management and IT security options, and would capitalize on the burgeoning opportunity in IdM.
Jost had extensive experience in leading global management consulting, systems integration and outsourcing organizations, the majority of it at Ernst & Young LLP and later at Capgemini consultancy from 2000 to 2005. At Capgemini, he held a series of senior management roles that included leading the North American Outsourcing Services business, which under his leadership attained bookings totaling $4.5 billion and revenue of $900 million.
After leaving Capgemini, Jost acquired Talisen Technologies in 2006. When Jost became a management partner with Akoya — also in 2006 — Talisen was a top provider of IT and business process management (BPM) solutions and managed infrastructure services. Akoya and Jost believed Talisen represented a platform that could be extended through strategic acquisitions.
Simultaneous approach on all fronts
Akoya's process of identifying and assessing Jost's potential to lead investor-backed initiatives reflected — as with all candidates — the key premise that leadership is at the heart of value creation. Akoya looked at Jost's experience, achievement and track record, as well as his leadership ability and personal traits, as indicators of his future success in executing a significant value-creation strategy.
With Jost now a validated management partner, Akoya turned its research and strategy development expertise to assisting him in articulating and validating the investment thesis and acquisition plan. Using fact-based market research and competitive data, and leveraging strategic insight and Jost’s industry knowledge, experience and relationships, the team then pressure-tested and vetted the thesis and discovered confirming facts.
The market research team proactively developed a comprehensive list of potential acquisition targets and prioritized them, based on defined criteria established with Jost. The team pre-screened the pool of targets, refining an initial list to several dozen management consultancies that demonstrated depth/experience in identity management and were aligned with the investment strategy. Simultaneously, Akoya worked to create the economic and financial models to support the investment strategy and began researching specific companies.
A target platform emerges
Mycroft, Inc. was an acknowledged IAM leader that the team recognized — and thoroughly vetted — as the ideal complement to Talisen Technologies in execution of the investment thesis. Mycroft assets included status as a branded IdM provider, automated IdM methods and tools, and commercial software engineering experience.
During this platform assessment process, the Akoya financial principals performed detailed analysis of the potential target companies. Working with management, they created comprehensive models incorporating historic results and future forecasts.
With Mycroft emerging as the ideal target platform, Akoya negotiated the letter of intent and preliminary legal documentation, relying on its deal-tested procedures to lead comprehensive due diligence.
All the while, Akoya's principals addressed the capital investment for the transaction, lining up a diverse group of co-investors to share in the immediate arrangement, as well as in the long-term organic growth of the new company.
Concurrently, Akoya brought in the relevant advisors from its Senior Advisory Council to assist in the final stages of the transaction and commit to stay on board and provide expertise for the life of the investment.
Announcement of the new company
In June 2007, Akoya Capital, LLC announced it had initiated, structured and closed the merger of Talisen Technologies with Mycroft, Inc., forming Mycroft Talisen Inc. The new entity is a premier provider of IAM and related IT security services, leveraging a variety of established and emerging vendor relationships. The company offers an integrated, comprehensive services suite, from Mycroft's expertise in assessment, architecture, development and implementation, spanning through Talisen's capability in maintenance, management and support. The combined experience of the merging companies represents hundreds of successful implementations.
Terry Jost heads the new company as chief executive officer, with Jonathan Freeman, founder and president of Mycroft, in the role of president.
Mycroft Talisen Inc. has offices in New York, St. Louis, Long Beach, Calif., and the UK, providing services to large- and medium-sized organizations across a variety of vertical markets, including financial services, manufacturing, retail, technology, health care, higher education, and state and local government. Its clients include several organizations in the Fortune 100.