Mergers & Acquisitions

FROM THE EDITORS AT CYBERSECURITY VENTURES

Q2 2017

The Mergers & Acquisitions Report is compiled and updated quarterly and features M&A resources and transactions in the cybersecurity market. Scroll down to see the deals.

M&A DESK

Large tech vendors acquire niche cybersecurity players in Q2 2017

johnmelloembossedJohn P. Mello, Jr.

Menlo Park, Calif. – Jun. 30, 2017

Cybersecurity merger and acquisition activity in the second quarter outpaced the first three months of the year with more than 40 deals announced or completed.

“There’s a clear trend of large tech vendors continuing their push into the lucrative cybersecurity space via niche acquisitions” says Steve Morgan, founder and Editor-In-Chief at Cybersecurity Ventures. “Microsoft bought another Israeli company — Hexadite — for $100 million, and numerous small players got snapped up by the likes of Honeywell, EY, General Dynamics, and Accenture.”

CyberArk signaled their appetite for acquisitions with a $42 million deal to takeover DevOps security software company Conjur. Gemalto closed on one of the larger deals in the quarter — with their $850 million purchase of 3M’s identity management business. Cybersecurity Ventures expects M&A activity from the larger cyber pure play firms to pickup in Q3 and Q4 of this year.

TRANSACTIONS

June

Jun. 29. Sonatype, a supply-chain automation company, announces it has acquired Vor Security, which maintains the OSS Index, a compilation of known Open Source software vulnerabilities. Financial terms of the acquisition were undisclosed.

Jun. 27. XLMedia announces acquisition of Securethoughts.com, a U.S. cyber security comparison website, for a total cash consideration of $2 million.

Jun. 27. Israel Aerospace Industries (IAI) announces it’s investing “millions” to acquire Inpedio, a Dutch provider of cybersecurity solutions to governments and companies, and Cytrox, a Hungarian company that provides governments with a solution for cyber intelligence as well as innovative engines for gathering intelligence from devices and cloud services.

Jun. 26. StarHub announces agreement to acquire a 51 percent stake in Accel Systems & Technologies for total consideration of $19.4 million. Accel is a cybersecurity systems integrator specializing in security solutions, consulting and managed security services. StarHub says move will give it the in-house capabilities to be an end-to-end provider of cybersecurity solutions and services.

Jun. 26. Nixu, a cybersecurity services company, purchases Bitsec, a Swedish digital forensics company. Financial terms of the acquisition were undisclosed.

Jun. 20. RoundTower Technologies, a solutions provider and consulting firm, acquires Mainstream Security, an advanced anomaly and cyber threat detection company. Financial terms of the acquisition were undisclosed.

Jun. 19. Citynet, a telecommuinications company whose services include network security, monitoring and management, announces acquisition of StratusWave Communications from Gateway Telecom. Citynet says purchase will allow it to broaden its service footprint while also expanding the services available to current StratusWave customers. Financial terms of the acquisition were undisclosed.

Jun. 16. Cognosec, a cybersecurity solutions supplier, announces intent to acquire Intact Software Distribution, which distributes cybersecurity solutions, for €51,000 in cash and new shares in Cognosec valued at €204,000.

Jun. 15. CompassMSP, a managed service provider for comprehensive managed IT, private and public cloud, and cybersecurity services, purchases Cubed Group, a provider of managed information technology, hardware and networking solutions. Financial terms of the acquisition were undisclosed.

Jun. 14. Thoma Brava, a private equity firm, announces it has acquired from Summit Partners the IT management platform company Continuum. With the platform, Managed Service Providers can remotely administer, backup and secure their clients’ IT environments from a single screen. Financial terms of the deal were not disclosed.

Jun. 13. Prevalent acquires Datum Security, a developer of third-party risk management and cyber threat assessment services. Prevalent says acquisition will help small and medium-sized businesses with third party risk validation. Financial terms of the acquisition were undisclosed.

Jun. 12. Honeywell signs definitive agreement to purchase Nextnine, a privately held provider of security management solutions and technologies for industrial cybersecurity. The acquisition is expected to complement Honeywell’s cybersecurity portfolio used at more than 6,200 sites globally across the oil and gas, utility, chemical, mining and manufacturing sectors. Financial terms of the acquisition were undisclosed.

Jun. 9. EQT Mid Market Europe acquires a majority stake in Open Systems AG, one of the largest pure-play managed security services providers in Europe. Financial terms of the acquisition were undisclosed.

Jun. 7. Fingerprint Cards completes purchase of Delta ID, an iris recognition company, for $113.1 million. FPC says acquisition will help it expand beyond mobile market where it has a strong position.

Jun. 5. EY, a professional services firm, announces deal to acquire Open Windows, an Australian identity and access management company. EY says purchase will strengthen its cybersecurity service capabilities in the Asia Pacific region. Financial terms of the acquisition were undisclosed.

Jun. 5. Telestra, an Australian telecommunications and media company, announces acquisition of Company 85, a London business that provides data center, workspace, cloud, security and network services. Financial terms of the acquisition were undisclosed.

Jun. 1. Claranet, a managed IT services provider, acquires Sec-1, a vulnerability, penetration testing and IT security services company. Financial terms of the acquisition were undisclosed.

Jun. 1. Affiliate of Pulse Secure, a provider of secure access solutions, agrees to acquire assets associated with Virtual Application Delivery Controller product family from Brocade Communications Systems. The transaction includes a leased research and development facility in Cambridge, UK and associated customer support and maintenance contracts. Financial terms of the acquisition were undisclosed.

May

May 31. Nixu, a Finnish cybersecurity company, acquires Dutch digital identity management provider Expert Solution Support Center for €2.06 million. Nixu says acquisition will contribute to its strategic goal to become a holistic cybersecurity partner for its clients headquartered in Northern Europe.

May 31. Security On-Demand, a provider of advanced threat detection and analytics services, acquires Infobright Approximate Query technology from Infobright. Financial terms of the acquisition were undisclosed.

May 31. Gemalto, a digital security company, completes purchase of 3M’s identity management business for $850 million. The units, including Cogent biometric technologies, will be integrated into a new entity to be known as Gemalto-Cogent.

May 26. Vector Capital, a global equity company, acquires Sandvine, a network policy control solutions provider, for $375 million.

May 26. StarHub, a telecommunications company, acquires 51 percent of AccelSystems & Technologies, a cybersecurity consulting and solutions provider, for $14.04 million.

May 25. ControlScan, a PCI compliance and security company, and EchoSat,  a provider of payments security, managed firewall and managed network solutions, announce they’re merging.

May 24. Microsoft agrees to acquire Hexadite for $100 million. Hexadite, located in Boston and with its research and development center in Israel, provides technology to automate responses to cyber attacks.

May 24. Insight Venture Partners, a private equity firm, acquires Resolve Systems, which develops incident response and automation solutions for IT departments, security, network, and service desk operations teams. Financial terms of the acquisition were undisclosed.

May 22. RigNet, a customized systems and solutions provider, announces acquisition of  Cyphre Security Solutions. Cyphre offers hardware-based file encryption detection for data at rest and in transit for both public and private clouds. Financial terms of the acquisition were undisclosed.

May 22. Morson International acquires ESP Group. ESP will be renamed Morson Cyber Security, which will specialize in cyber security managed services for the private and public sector. Financial terms of the acquisition were undisclosed.

May 22. – Advanced Discovery, a global eDiscovery and litigation support provider, acquires Altep, a leader in eDiscovery, compliance and cybersecurity company.

May 18. Distil Networks, a bot detection and mitigation company, acquires Are You Human, which uses real time data to determine if a website visitor is a human or not. Financial terms of the acquisition were undisclosed.

May 16. Communicate Technology, which installs and maintains IT, telecom services and cloud based services to business parks in the UK, acquires Landscape Networks, a provider of information security, secure LAN/WAN Infrastructure and data protection products and services. Financial terms of the acquisition were undisclosed.

May 11. F-Secure acquires Digital Assurance, a provider of information security assessment services. Digital Assurance specializes in security testing services that assess the security of devices, systems and applications, as well as entire organizations and broad infrastructure. Financial terms of the acquisition were undisclosed.

May 11. CyberArk Software acquires Conjur, a maker of DevOps security software, for $42 million in cash. CyberArk says the acquisition allows it to reach deeper into the DevOps lifecycle to protect secrets and manage machine identities.

May 11. Opaq Networks acquires Drawbridge Networks, a provider of micro segmentation solutions. Opaq says the acquisition will allow its customers to better identify, monitor, and defend against cyberattacks.

May 4. General Dynamics buys Advanced Pacific’s electronics and communications division to grow its cybersecurity and service offerings for its clients in the defense and intelligence industries. Financial terms of the acquisition were undisclosed.

May 3. Mission Solutions Group, a family of companies providing mission critical support in communications and cybersecurity, acquires Morgan 6, an Agile software developer. MSG says acquisition is part of company’s plans to build out its cyber vertical over the coming months. Financial terms of the acquisition were undisclosed.

May 2. Private equity firms BC Partners and Medina Capital announce closing acquisitions of CenturyLink’s portfolio of data centers and co-location business, as well as Medina Capital’s security and data analytics portfolio. The transactions are valued at $2.8 billion. The combined assets will form a new business, Cyxtera Technologies, which begins operations immediately.

May 2.  Geek, an Australian managed service provider, acquires Valiant IT. Financial terms of the acquisition were undisclosed.

May 2. HIG Capital agrees to acquire majority stake in Conet Technologies. HIG says it will help strengthen Conet’s capabilities in cybersecurity, cloud computing and big data. Financial terms of the acquisition were undisclosed.

May 1. PSA Security Network, an electronic security cooperative, acquires USAV, a team of professional audio-visual integrators, and its affiliate CI Edge, a buying group that supports middle market commercial technology integrators. Financial terms of the acquisition were undisclosed.

April

Apr. 28. Thales agrees to acquire Guavus, a developer of machine intelligent big data analytics platforms, in a cash transaction valued at up to $215 million. Thales designs and deploys security equipment, systems and services.

Apr. 19. European Union approves $2.7 billion acquisition of Morpho, the biometrics and security arm of the French aerospace company Safran, by the U.S. private equity firm Advent International. The deal is contingent upon Morpho selling off its payment card business.

Apr. 18. ECS Federal, a provider of systems, software and expertise to the National Defense, cyber, cloud services and intelligence markets, acquires InfoReliance, a provider of cybersecurity, cloud computing, software engineering solutions and managed services. Financial terms of the acquisition were undisclosed.

Apr. 7. SecureData, a provider of support and managed security services, acquires Cygnia Technologies, a cybersecurity solutions provider. Financial terms of the acquisition were undisclosed.   

Apr. 6. F-Secure acquires Little Flocker, a MacOS behavioral analysis program. The software blocks malware, including ransomware, by monitoring apps that attempt to access confidential files and system resources. F-Secure says it is folding Little Flocker into its Xfence product. Financial terms of the acquisition were undisclosed.

Apr. 4. WISeKey International Holding, a Swiss cybersecurity and IoT company, completes acquisition of Quovadis Holdings, a next-generation public key infrastructure company. Consideration to equity holders of Quovadis includes $13 million in cash, plus 1.11 million in newly issued Class B Shares of WISeKey, which is also paying off $2 million of QuoVadis debt.

Apr. 3. Accenture completes acquisition of Arismore, a privately held company in France that specializes in providing security services, including identity and access management. Financial terms of the acquisition were undisclosed.

Apr. 3. Chess, a telecommunications and ICTprovider, acquires Foursys, a cybersecurity consultancy. Financial terms of the acquisition were undisclosed.

Apr. 3. Accenture announces completion of acquisition of iDefense Security Intelligence Services business from VeriSign. Accenture says acquisition will allow it to provide better threat intelligence to its clients. Financial terms of the acquisition were undisclosed.

Stay tuned for the Q2 2017 edition of the Mergers and Acquisitions Report.

John P. Mello, Jr. a freelance writer specializing in business and technology subjects, including consumer electronics, business computing and cyber security.

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Q1 2017

The Mergers & Acquisitions Report is compiled and updated quarterly and features M&A resources and transactions in the cybersecurity market. Scroll down to see the deals.

M&A DESK

Cybersecurity acquisition activity brisk during first quarter of 2017

johnmelloembossedJohn P. Mello, Jr.

Dozens of cybersecurity acquisition deals were cut during this year’s first quarter capped by Cisco’s buy of AppDynamics for $3.7 billion and Intel’s purchase of Mobileye for $15.3 billion.

CA Technologies was also in buying mode and scooped up Veracode for $614 million.

In addition, both Palo Alto Networks and Sophos opened their war chests to expand their reach.

Palo Alto paid $105 million in cash for LightCyber, a company developing solutions in the hot security area of behavioral analytics.

Sophos, too, invested in an area attracting heated interest in the security field — machine learning and artificial intelligence — with a buy of Invincea for $100 million.
User analytics also appears to have some appeal to Amazon Web Services, which reportedly picked up Harvest.ai for $19 million.

Meanwhile, IBM took a step toward improving the visualization capacities of its security products with the purchase of Agile 3 Solutions for an undisclosed sum.

TRANSACTIONS

March

Mar. 29. Mastercard acquires NuData Security, an online and mobile fraud-prevention company. Financial terms of the acquisition were undisclosed.

Mar. 27. Orion, a global IT services company, acquires Structured Network Solutions, a provider of technology integration services, including VPN and remote access solutions. Financial terms of the acquisition were undisclosed.

Mar. 24. GoDaddy agrees to acquire Sucuri, a website security provider. Financial terms of the acquisition were undisclosed.

Mar. 22. Cisco acquires AppDynamics, an application and business monitoring company, for approximately $3.7 billion in cash and assumed equity awards.

Mar. 22. SunBlock Systems, a digital forensics and business intelligence company, announces merger with Marquet International, a corporate investigations firm.

Mar. 21. 4Sec Group, a channel group of companies with a focus on cybersecurity compliance and cloud-based technologies, acquires Alpha Generation Distribution, an IT security distributor. Financial terms of the acquisition were undisclosed.

Mar. 20. Accume Partners, a provider of audit, technology, compliance, enterprise risk and cybersecurity services primarily to the banking and financial services industry, acquires Aporia Solutions, a provider of technology and information system auditing and cybersecurity services. Financial terms of the acquisition were undisclosed.

Mar. 13. Intel acquires Mobileye, a maker of sensors and cameras for driverless vehicles, for $15.3 billion.

Mar. 10. Comcast acquires the Converge business of Icontrol Networks. Converge is a creator of IoT and connected home security solutions. Financial terms of the acquisition were undisclosed.

Mar. 7. CA Technologies announces intention to acquire application security vendor Veracode for $614 million.

Mar. 3. MGT Capital Investments, whose executive chairman is John McAfee, acquires 46 percent equity interest in Demonsaw, a secure, anonymous, free, and decentralized cross-platform information-sharing application with end-to-end encryption without a client app. Financial terms of the acquisition were undisclosed.

Mar. 1. Salient CRGT, a provider of agile software development, data analytics, mobility, cybersecurity  and infrastructure solutions, acquires Information Innovators, which delivers IT solutions and services to the federal government. Financial terms of the acquisition were undisclosed.

February

Feb. 28. Palo Alto Networks acquires LightCyber, a behavioral analytics company, for $105 million in cash.

Feb. 19. Apple reportedly acquires  RealFace, an Israeli facial recognition company that makes smart biometric login softwar3e for mobile devices, for $2 million.

Feb. 9. Accenture enters into agreement to acquire the iDefense Security Intelligence Services business from VeriSign. iDefense is a provider of cyber intelligence related to vulnerabilities, malicious code and global threats to organizations. Financial terms of the acquisition were undisclosed.

Feb. 8. Accenture announces agreement to acquire federal government services business of Endgame, a privately held endpoint detection and response cybersecurity software company. Financial terms of the acquisition were undisclosed.

Feb. 8. Sophos, a cybersecurity solutions company, agrees to acquire Invincea, a provider of machine-learning threat detection software, for $100 million in cash and an earn-out of $20 million.

Feb. 8. Forcepoint, which focuses on insider threats, acquires Skyfence cloud security business from Imperva. Financial terms of the acquisition were undisclosed.

Feb. 7. Malwarebytes, a maker of malware prevention and remediation software, acquires Saferbytes, a security start-up that builds technologies with anti-malware, anti-exploit, anti-rootkit, cloud AV and sandbox capabilities. Financial terms of the acquisition were undisclosed.

Feb. 7. WISeKey International Holding, a cyberseurity and IoT company announces intent to acquire 85 percent equity position in QV Holdings, a provider of managed public key infrastructure, certification authority and electronic signature services. Upon completion of the transaction, WISeKey will pay to QV selling equity holders a cash consideration of $13 million plus 1.11 million newly issued WIHN Class B Shares issued from existing authorized capital, subject to a lock-up period of 3 months, as well as pay $2 million in QV debt.

Feb. 6. UKFast, a website hosting company, acquires Secure Information Assurance, which provides secure cloud hosting and cybersecurity services to the UK’s ministry of defense and other government agencies and offices. Financial terms of the acquisition were undisclosed.

Feb. 6. StackPath, a cloud security services provider, acquires Highwinds, a content delivery network. Financial terms of the acquisition were undisclosed.

Feb. 1. Hewlett Packard Enterprise acquires Niara, a user and entity behavior analytics security company. Financial terms of the acquisition were undisclosed.

Feb. 1. KKR, a global investment company, acquires a majority stake in Optiv Security, a provider of end-to-end cybersecurity solutions. Financial terms of the acquisition were undisclosed.

January

Jan. 31. Radware, a provider of cybersecurity and application delivery solutions, acquires Seculert, a deliverer of cloud-based protection against network breaches and data exfiltration. Financial terms of the acquisition were undisclosed.

Jan. 24. Solera Holdings, a provider of data and software for automotive, home ownership and personal identity management, acquires Digidentity, an online identity security and authentication company. Financial terms of the acquisition were undisclosed.

Jan. 23. IBM Security acquires Agile 3 Solutions, maker of software to visualize, understand and manage risks associated with protecting sensitive data. Financial terms of the acquisition were undisclosed.

Jan. 17. The Kudelski Group acquires M&S Technologies , a provider of network and cyber security solutions, and added it to the group’s Kudelski Security division. Financial terms of the acquisition were undisclosed.

Jan. 17. Bitdefender, a security software maker, acquires Profit Technology to expand its position in the French enterprise market. Financial terms of the acquisition were undisclosed.

Jan. 17. Auxilio, a provider of document workflow solutions and IT security services, acquires CynergisTek, a cybersecurity and privacy consulting firm, in a deal valued at up to $34.3 million.

Jan. 16. Cybersecurity Ventures acquires domain name Cyberwarfare.com from a private seller. Financial terms of the acquisition were undisclosed.

Jan. 9. LLR Partners acquires BluVector, a machine learning threat detection and cyber hunting solution, from Northrop Grumman Corporation and commits $50 million to BluVector, which will operate as a standalone business, to support the acquisition and the company’s future growth plans.

Jan. 9. TechCrunch reports Amazon Web Services has acquired Harvest.ai, a user behavior analytics company founded by two former NSA employees, for $19 million.

Jan. 9. Rohde & Schwarz Cybersecurity, which is part of Rohde & Schwarz electronics group, a supplier of solutions in the fields of test and measurement, broadcasting, secure communications and radiomonitoring and radiolocation, acquires DenyAll, a provider of cloud services and appliances for simplifying security during the development process. Financial terms of the acquisition were undisclosed.

Jan. 5. Belcan, a global supplier of engineering, technical recruiting and IT services supporting the aerospace, industrial and government services markets, acquires The Kemtah Group, a supplier of IT support services, including cybersecurity services. Financial terms of the acquisition were undisclosed..

Jan. 4. Solera Holdings, a data and software provider for the automotive, home identity management markets, acquires Autodata, an information provider for the auto industry.

Jan. 3. MacAulay-Brown, an engineering, cybersecurity and product solutions company serving the defense, intelligence and homeland security markets, acquires Enlighten IT Consulting, developer of a platform to combat cyberattacks against government agencies. Financial terms of the acquisition were undisclosed.

Jan. 3. VOR Technology, a solutions provider to the U.S. intelligence community, acquires Sintel Group, a deliverer of intelligence analysis services and offensive cyber offerings to the federal government. Financial terms of the acquisition were undisclosed.

Jan. 3. Sirius Computer Solutions, an IT integrator, acquires Continuum Worldwide Corporation, an information security company which specializes in compliance, governance, digital forensics and incident response. Financial terms of the acquisition were undisclosed.

Stay tuned for the Q2 2017 edition of the Mergers and Acquisitions Report.

John P. Mello, Jr. a freelance writer specializing in business and technology subjects, including consumer electronics, business computing and cyber security.

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