DHS turns back on U.K. company to secure its buildings

Growing sensitivity in the United States about foreign ownership of critical infrastructure assets and sensitive technology already claimed two victims: The DP World port management deal, and the Check Point-Sourcefire acquisition plan. Both deals were withdrawn after the companies involved concluded that the deals would be blocked — DP World after it had already been approved by CFIUS; the Columbia, Maryland-based Sourcefire one before it had been fully vetted. The same sensitivity is also apparent in other countries, as evidenced by the recent decision by Belcamp, Maryland-based SafeNet to withdraw its plan to acquire Cambridge, U.K.-based nCipher, after the British authorities let it be known that they did not like the idea of a sensitive-technology U.K. company being owned by a non-U.K. entity.

All this will have a chilling effect on the globalization of the security market. The most recent example: DHS was planning to use a British-based security firm to protect the buildings where U.S. domestic security policy is formed, but changed its mind. Instead of using Wackenhut Services, the department awarded the five-year, $29 million contract to Chantilly, Virginia-based Paragon Systems.