27 Oct Cybersecurity M&A Report Vol. 2, No. 3: List Of Mergers And Acquisitions In Q3 2018
Cisco and Atos cut billion dollar deals during light activity quarter
Northport, N.Y. – Oct. 2, 2018
As summer temperatures rose this year, cybersecurity merger and acquisition activity cooled down. VC funding is another story. Our latest M&A diary details the activity for the third quarter.
Sep. 28. Eagle Universal Services, of Atlanta, a development and design services firm, announces intent to acquire Stimulus Engineering Services, of Crane, Ind., an engineering, technical services, cybersecurity, and electronic warfare company. Financial terms of the deal were undisclosed. Eagle says deal will add significant capabilities to its cybersecurity and technical services capabilities.
Sep. 27. Reuters reports Cognizant Technology Solutions Corp., of Teaneck, N.J., a multinational IT services company, is in talks to acquire Softvision, a digital transformation company based in Oakland, Calif., for $550 million.
Sep. 26. NuMSP, of Clifton, N.J., a provider of managed IT and security services to SMBs, acquires Aperio IT, an information technology services provider in Sacramento, Calif. Financial terms of the deal were undisclosed. NuMSP says acquisition will expand its reach into Northern California.
Sep. 24. HID Global, of Austin, Texas, an identity solutions company, acquires Crossmatch, of Palm Beach Gardens, Fla., a biometric identity management and secure authentication solutions firm, from Francisco Partners. Financial terms of the deal were undisclosed. HID Global says Crossmatch’s public-sector biometrics business will enhance HID’s reach into the immigration and border control, law enforcement, and military and defense markets. Crossmatch products and solutions include criminal booking, rapid mobile identification, background checks, security clearance processing, military base access, counter-terrorism and mobile intelligence gathering, visa processing and citizen services.
Sep. 13. Bomgar, of Johns Creek, Ga., announces intent to acquire BeyondTrust, of North Andover, Mass. Bomgar focuses on remote access management technology, as well as privileged access management solutions, in which BeyondTrust is a market leader. Financial terms of the deal were undisclosed.
Sep. 5. Visium Technologies, of Fairfax, Va., announces it has signed a definitive agreement to acquire Threat Surface Solutions Group, of Chicago. Visium is a global cybersecurity company focusing on enterprise network, cloud and IoT security. TSSG focuses on cybersecurity services, including test and measurement, test and evaluation, and risk mitigation. Visium says TSSG will operate as a wholly owned subsidiary. Financial terms of the deal were undisclosed.
Sep. 5. Temasek Holdings, a holding company owned by the government of Singapore, and StarHub, a Singapore telecommunications company, announce formation of Ensign Infosecurity, which will offer custom, end-to-end cybersecurity solutions to enterprises and governments globally. Temasek will hold 60 percent of Ensign, and StarHub will own 40 percent. In addition, Ensign has also agreed to buy some cybersecurity assets from StarHub for SG$120 million — $16 million in cash and the rest in newly issued Ensign shares.
Aug. 31. Tesserent, of Box Hill, Australia, a cybersecurity company, announces intent to purchase Asta Solutions, of Melbourne, Australia, a managed services provider, for AU$3.8 million.
Aug. 23. 3SG, of Columbus, Ohio, a provider of technology services to governments, utilities, and technology organizations, announces acquisition of OnGuard Systems, of Worthington, Ohio, an endpoint security software company. Financial terms of the deal were undisclosed.
Aug. 22. AT&T announces completion of acquisition of AlienVault, maker of a threat detection, incident response, and compliance security platform. AlienVault’s President and CEO Barmak Meftah will become president of AT&T Cybersecurity Solutions and remain CEO of AlienVault. Financial terms of the deal were undisclosed.
Aug. 22. Optium Cyber Systems, of Woodlands, Texas, a cybersecurity consulting firm, enters final negotiations to acquire Iron Man Protection, of Houston, a security solutions and risk management services company.
Aug. 17. Shearwater Group, a UK cybersecurity company, agrees to acquire Brookcourt Solutions, also located in the UK, an IT and network security firm, for £30.3 million — £22.95 million in cash and £7.35 million in stock.
Aug. 16. Comodo, of Roseland, N.J., a web security solutions provider, announces acquisition of CodeGuard, of Atlanta, a website maintenance, backup and recovery software maker. Financial terms of the deal were undisclosed. Comodo says CodeGuard will continue to operate independently from its current location, although its services and solutions will be integrated into Comodo’s offerings to its customers.
Aug. 16. Cyberfort Software, of San Francisco, which specializes in acquisition and development of content filtering and ad-blocking software, signs letter of intent to acquire Just Content Software, an iOS ad-blocking and content filtering app. Under the terms of the acquisition, Cyberfort will tender an unspecified number of shares for Just Content and invest capital into other projects.
Aug. 15. Thoma Bravo, a private equity investment firm based in San Francisco, completes deal to become the majority investor in Centrify, of Santa Clara, Calif., maker of an identity and access management platform. Thoma Bravo acquired the interest from Centrify’s venture capital investors, led by Mayfield, Accel Partners, Jackson Square Ventures, and Index Ventures. Financial details were not disclosed.
Aug. 2. Cisco, of San Jose, Calif., a multinational technology conglomerate, announces intent to purchase Duo Security, of Ann Arbor, Mich., a provider of cloud-based, unified access security and multi-factor authentication, for $2.35 billion in cash and assumed equity awards for Duo’s outstanding shares, warrants, and equity incentives on a fully-diluted basis. Cisco says the addition of Duo’s technology to its platforms will allow customers to securely connect users to any application on any networked device.
Aug. 2. Alion Science and Technology, of McLean, Va., agrees to acquire engineering and technology services contractor MacAulay Brown, of Dayton, Ohio. Financial terms of the deal were undisclosed. Alion says deal will strengthen its inroads into emerging technologies in electronic warfare, artificial intelligence, cybersecurity, and cloud solutions.
Aug. 1. Mimecast, of Lexington, Mass., an email and data security company, announces purchase of Solebit, an Israeli security software company, for $88 million. Solebit’s technology identifies and isolates zero-day malware and unknown threats in data files as well as links to external resources. Its technology offers better detection and faster processing, a rare combination in a security product, according to Mimecast.
Jul. 31. Cyan AG, of Munich, a provider of white label IT security solutions for telecommunications, banks, and insurance companies as well as gaming and cryptocurrency platforms, acquires 76.81 percent of I-New Unified Mobile Solutions AG, of Mattersburg, Austria, a provider of technology and service solutions and MVNO platforms. Cyan says acquisition will enable it to speed up its international expansion timetable by two years.
Jul. 26. Imperva, of Redwood Shores, Calif., a cybersecurity solutions provider, signs agreement to acquire Prevoty, of Los Angeles, an applications security company. The transaction is valued at $140 million in cash, subject to potential working capital and other adjustments.
Jul. 24. Gigamon, of Santa Clara, Calif., a networking software company, agrees to buy Iceberg, a Seattle cybersecurity startup. Gigamon says the deal will give it more expertise in cybersecurity and subscription software. Financial terms of the deal were undisclosed, but Reuters notes the estimated worth of Iceberg is about $100 million.
Jul. 24. Kape Technologies, a consumer cybersecurity company in London, announces acquisition from Bessemer Venture Partners of Intego, Waltham, Mass., a maker of Macintosh security and antivirus software, for $16 million. Kape says acquisition will broaden its product stack and R&D capabilities, expand its user base, and enhance cross-sell opportunities.
Jul. 22. Atos, of Bezons, France, announces it is acquiring Syntel, of Troy, Mich., for $3.57 billion in cash and net debt. Atos offers cybersecurity, big data and identity management services. Syntel has expertise in cloud, social media, mobile, analytics, IoT and automation. The deal is expected to boost Atos’s position in several North American vertical markets, especially in banking, finance, and insurance.
Jul. 11. SolarWinds, of Austin, Texas, an IT management company, announces acquisition of Trusted Metrics, of Raleigh, N.C., a management security services provider. With the move, SolarWinds plans to extend its reach into the threat monitoring market. Financial terms of the deal were undisclosed.
Jul. 11. L3 Technologies, of New York City, agrees to acquire Azimuth Security, of Sydney, Australia, and Linchpin Labs. of Ottawa, Canada, for $200 million, payable in L3 stock. An upward adjustment of $32 million could also be made based on the companies’ post acquisition performance. Linchpin is a software development company specializing in computer network operations, cross-platform and low-level systems development, and IT security service. Azimuth is an information security consultancy focused on analyzing software systems, including threat modeling and design, configuration, and source code review.
Jul. 11. LandStar, of Raleigh, N.C., announces completion of purchase of Data443, also of Raleigh, an endpoint security company. Data443 will operate as a wholly-owned subsidiary of LandStar. Financial terms of the deal were undisclosed.
Jul. 10. Bomgar, of Johns Creek, Ga., an identity and privileged access management company, announces intent to acquire Avecto, of Somerville, Mass., an endpoint privilege management firm. Financial terms of the deal were undisclosed.
Jul. 10. Mimecast, of Lexington, Mass., an email and data security company, announces merger with Ataata, a cybersecurity training firm based in London.
Jul. 5. Claranet, a UK managed services company, announces acquisition of NotSoSecure, a UK IT firm that specializes in penetration testing and ethical hacking training, including training at Black Hat hacking conferences. Financial terms of the deal were undisclosed.
John P. Mello, Jr. is a freelance writer specializing in business and technology subjects, including consumer electronics, business computing and cyber security.