Berkeley Research Group (BRG) discovered a cyberattack on March 2, just as it was preparing for a significant debt sale. The cyberattack occurred amidst efforts to finalize a $700 million debt sale, intended to fund BRG’s buyout by TowerBrook Capital Partners. Hackers encrypted files and claimed to have stolen sensitive data from BRG’s systems. The firm took swift action, involving data-security experts, including Octillo Law and Booz Allen Hamilton, to help manage the incident and safeguard operations.
BRG’s internal IT team worked around the clock to restore the network, assess the extent of the damage, and secure systems. The company focused on retrieving unencrypted data and putting it back into service while investigating the breach’s origins and impact. They notified prospective loan investors about the cyberattack, while ensuring continued communication about the evolving situation. As part of the firm’s preparedness, they also leveraged their comprehensive cyber insurance coverage to mitigate financial losses tied to the attack.
The ransomware attack raised significant concerns among investors in the ongoing $700 million debt sale, as the acquisition deal was closely tied to financing. Banks running the debt sale had initially hoped to finalize the deal with investors, but the cyber incident caused delays in the decision-making process. Despite these concerns, the deal is expected to close by April, according to Moody’s Ratings, as investors are urged to proceed cautiously. The situation underscores the potential risk of cyber threats disrupting business transactions, particularly with high-stakes deals on the table.
Ransomware has become an increasingly common threat, causing significant disruptions across various sectors. BRG’s experience highlights the vulnerabilities that businesses face, especially when navigating large-scale financial transactions like mergers and acquisitions. Several high-profile attacks, such as those on CDK Global and MoneyGram, have illustrated the severe operational and financial consequences. BRG’s swift response and proactive involvement with cybersecurity experts demonstrate the critical importance of timely actions to prevent the long-term effects of such attacks, which can severely damage a company’s reputation and operational capacity.
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