Mergers & Acquisitions

FROM THE EDITORS AT CYBERSECURITY VENTURES

Q4 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

Billion dollar deals headline merger and acqusition action in fourth quarter of 2017

johnmelloembossedJohn P. Mello, Jr.

Sausalito, Calif. – Jan. 3, 2018

Two billion dollar deals topped merger and acquisition activity in the cybersecurity sector in the fourth quarter of 2017.

Gemalto spurned a takeover attempt by Atos and jumped into the arms of French aerospace and defense company Thales for $5.43 billion. Gemalto produces SIM cards and NFC for mobile phones, EMC chip cards for banks and authentication systems for online banking.

Meanwhile, Barracuda Networks was taken off the public market by Thoma Bravo, a private equity firm, that gobbled up all the network security company’s shares for $1.6 billion.

Another large deal finalized during the quarter was DigiCert’s acquisition of Symantec’s website security and PKI solutions business for $950 million. Symantec will remain in the picture, though, by retaining a 30 percent interest in DigiCert.

Also during the period, Synopsis made a move to expand its application security business by buying Black Duck software for $565 million. Black Duck helps companies find and fix vulnerabilities in the open source components they use in their applications.

In addition, Germany’s Continental AG, with an eye on the auto of the future, scooped up Israel’s Argus Security for $400 million. Argus develops technology for protecting connected cars from being attacked by hackers.

Other deals during the quarter: Mercury Systems acquired Themis Computer for $180 million, Proofpoint purchased Cloudmark for $110 million and Weblife for $60 million, Capital Management bought Actiance for $100 million, and StarHub garnered D’Crypt for $90.4 million.

December

Dec. 24. Amazon acquires Blink, a builder of wireless home monitoring systems and security cameras. Financial terms of the deal were undisclosed.

Dec. 21. Mercury Systems signs definitive agreement to acquire for $180 million Themis Computer, a designer, manufacturer and integrator of commercial, SWaP-optimized rugged servers, computers and storage systems for the military. Mercury says purchase will help it expand its business in the so-called C4I market– command, control, communications, computers and intelligence.

Dec. 19. Network Security Group, the cybersecurity distribution division of Temprano Techvestors, completes the acquisition of Waytek Software, the boutique endpoint security software distribution and value-added resale division of Waytek. Through the acquisition, NSG adds the Avast Business cloud and endpoint security solutions to its partner offerings. Financial terms of the deal were undisclosed.

Dec. 19. Ingram Micro, a provider of logistics and supply chain technology for business markets, acquires Cloud Harmonics, a value-added  provider of cybersecurity solutions. Financial terms of the deal were undisclosed.

Dec. 17. Thales, a French aerospace and defense company, agrees to acquire Gemalto for $5.43 billion. Gemalto produces SIM cards and NFC for mobile phones, EMC chip cards for banks and authentication systems for online banking.

Dec. 15. Singapore telecom company StarHub acquires D’Crypt, a maker of encrypted communications and high performance computing solutions, for $90.4 million. StarHub says purchase will enhance its capabilities in the enterprise cybersecurity, digital security and IoT space.

Dec. 13. HelpSystems acquires Fox Technologies from Parallax Capital Partners. Fox makes solutions for centralizing Linux and Unix identity and access management. HelpSystems says purchase will enable it to meet its customers’ user privilege management needs across a greater range of operating systems. Financial terms of the deal were undisclosed.

Dec. 13. Intertek, a quality assurance provider, acquires Acumen Security, which offers security certification and assurance services. Financial terms of the deal were undisclosed.

Dec. 12. KPN, a Dutch provider of cyber threat security monitoring and cloud consultancy services, finalizes acquisition of QSightIT. KPN says purchase will broaden its range of cloud security services to its enterprise customers. Financial terms of the deal were undisclosed.

Dec. 12. Syncsort, a maker of “big iron” to big data solutions, completes acquisition of Cilasoft, a developer of compliance and security software for IBM’s large computer platforms. Financial terms of the deal were undisclosed.

Dec. 6. Glance Technologies, maker of a mobile payment system, completes purchase of Blockimpact, a cryptocurrency and blockchain technology, from Ztudium. Financial terms of the deal were undisclosed.

Dec. 5. Integrity360, a provider of managed security services, announces acquisition of Metadigm, which has been in business for more than two decades and is one of the oldest cybersecurity firms in the United Kingdom. Financial terms of the deal were undisclosed.

Dec. 1. TP Group, a subsidiary of Advanced Security, acquires Sentinel Technologies, a business with specialties in cloud computing, hardware procurement, backups, data recovery, cybersecurity and advisory services. Financial terms of the deal were undisclosed.

November

Nov. 29. Proofpoint, an email security company, enters into definitive agreement to acquire Weblife.io, maker of browser isolation solutions for $60 million, plus $6 million in backend incentives. It says purchase will expand its enterprise solutions to personal email.

Nov. 29. McAfee and SkyHigh Networks, a cloud security company, announce definitive agreement to combine their businesses. SkyHigh CEO Rajiv Gupta will become head of McAfee’s new cloud business unit, while most of SkyHigh’s existing organizational structure will remain intact. Financial terms of the deal were undisclosed.

Nov. 29. Qualys, a provider of cloud-based security and compliance solutions, enters into an asset purchase agreement with NetWatcher, developer of a solution that combines asset discovery, vulnerability management, intrusion detection, behavioral monitoring, SIEM, log management and continuous threat intelligence. Qualys says it expects NetWatcher’s service to be integrated into the Qualys cloud platform in 12 months. Financial terms of the cash deal were undisclosed.

Nov. 28. Private equity firm Thoma Bravo purchases all outstanding shares of Barracuda Networks for $1.6 billion and takes the company private.

Nov. 28. Shakopee, Minn.-based Entrust Datacard, maker of security software and equipment for payment cards, computers and smart phones, acquires Trustis Limited, a UK encryption company. Financial terms of the deal were undisclosed.

Nov. 28. Parsons Corp., an engineering company, announces intent to acquire Williams Electric, an integrator of hardware and software into a unified control system. Parsons says purchase will help it grow its ability to protect critical infrastructure assets from threat actors. Financial terms of the deal were undisclosed.

Nov. 27. Akamai Technologies announces it has finalized acquisition of Nominum, a provider of DNS-based security solutions. Akamai says purchase will allow it to serve a larger base of carrier and enterprise customers with more comprehensive security products designed to identify, block, and mitigate cybersecurity threats, such as malware, ransomware, phishing, and data exfiltration. Financial terms of the all-cash deal were undisclosed.

Nov. 27. Trend Micro, an information security company, announces acquisition of Immunio, an application protection company. TM  says purchase will bolster hybrid cloud security capabilities. Financial terms of the deal were undisclosed.

Nov. 27. Fortlock Group, a provider of operational and IP network based security management solutions, acquires Comsmart, a project and change  delivery company. Financial terms of the deal were undisclosed.

Nov. 21. Vinci Energies acquires Cougar Automation, a company focused on control systems integration, industrial IoT, functional safety and cybersecurity systems. Financial terms of the deal were undisclosed.

Nov. 17. Focus Technology Solutions, whose specialties includes data protection and cybersecurity, announces acquisition of NSK, a managed services consulting company. Financial terms of the deal were undisclosed.

Nov. 16. Optiv Security, a provider of end-to-end cybersecurity solutions, acquires Decision Lab, a big data, automation and orchestration services company. Financial terms of the deal were undisclosed.

Nov. 16. GreyCastle Security, a risk management awareness and operational security consulting firm, acquires another information security management consultancy, Orange Parachute. Financial terms of the deal were undisclosed.

Nov. 15. ADT, a provider of security and automation solutions for homes and businesses, acquires Datashield, which offers managed detection and response services to combat advanced cyber threats in real time. Financial terms of the deal were undisclosed.

Nov. 15. K1 Capital Management announces plans to acquire Actiance, a communications compliance provider, and merge it with Smarsh, a portfolio company that competes in the same space. Deal is estimated to be worth more than $100 million.

Nov. 14. Cloudflare, a web performance and security company, acquires Neumob, developer of a technology to improve the network performance of mobile applications. Financial terms of the deal were undisclosed.

Nov. 14. Intelligent Waves purchases virtual mobile infrastructure technology and associated intellectual property from Hypori. It says new IP will allow it to give secure. protected, cloud-based functional command, control and mobility to the federal government from anywhere in the world. Financial terms of the deal were undisclosed.

Nov. 13. Optiv Security, a portfolio company of KKR and Blackstone, acquires Conexsys Communications, a  security and networking solutions provider. Financial terms of the deal were undisclosed.

Nov. 8. Barracuda Networks acquires Sonian, a cloud archiving and analytics firm. Financial terms of the deal were undisclosed.

Nov. 7. Proofpoint announces it will acquire Cloudmark for $110 million. Proofpoint provides cloud-based cybersecurity services. Cloudmark provides cloud-based security services for the ISP and mobile carrier markets.

Nov. 6. Symantec announces purchase of SurfEasy, a maker of virtual private networks. Financial terms of the deal were undisclosed.

Nov. 3. Germany’s Continental AG announces intent to buy Argus Cyber Security, an Israeli developer of technology to protect connected cars from hackers. Continental did not disclose the value of the deal but media reports peg it at $400 million.

Nov. 2. Synopsis, a chip and application testing company, announces acquisition of Black Duck Software, which helps companies find and fix vulnerabilities in open source components they use, for $565 million in cash, or $548 million in net cash acquired.

Nov. 2. Caendra, parent of eLearnSecurity, announces acquisition of The Ethical Hacker Network, a highly visited website for members of the IT security community. Financial terms of the deal were undisclosed.

Nov. 1. Convergint Technologies announces acquisition of Security Products Company,  a full-service provider of physical and electronic security systems, construction management services, IT and cybersecurity solutions, and marketing solutions. Financial terms of the deal were undisclosed.

October

Oct. 31. DigiCert, a provider of identity and encryption solutions for the enterprise, announces completion of acquisition of Symantec’s website security and PKI solutions. The deal garnered $950 million for Symantec, which will also retain a 30 percent interest in DigiCert.

Oct. 26. SEC filing reveals Raytheon paid $54 million, excluding retention payments, for RedOwl, a security analytics company focused on helping customers understand and manage human risk. RedOwl was purchased in August and integrated into Raytheon’s Forcepoint business.

Oct. 25. Australia-based Family Zone Cyber Safety signs share sale agreement to acquire 100 percent of Linewize Services and Linewize Limited, which is a major provider of cybersecurity and safety services on New Zealand. The deal calls for Linewize to receive NZ$200,000 in cash, 9.5 million ordinary shares and 9.5 million in performance shares in Family zone.

Oct. 25. Cognosec, a Swedish cybersecurity company, completes acquisition of 100 percent of shares of Intact Software Distribution, a South African-based company specializing in providing cybersecurity solutions to tier-one vendors, for €506,000. Cognosec says Intact will become part of the Swedish firm’s Credence Security subsidiary.

Oct. 24. Imprivata, a healthcare IT security company. announces acquisition of the identity and access management business of Caradigm, a GE healthcare company. Financial terms of the deal were undisclosed.

Oct. 23. KnowBe4 announces acquisition of Securable.io, a cybersecurity education firm. It says purchase gives company a growing library of unique content to increase user skill and engagement, as well as unique technology for automatically assigning training based on behavior that is being observed by individuals or groups within an organization. Financial terms of the deal were undisclosed.

Oct. 20. Booz Allen Hamilton announces agreement to acquire Morphick, a threat actor analysis company. Financial terms of the deal were undisclosed.

Oct. 19. Fidelis Cybersecurity announces acquisition of TopSpin Security, a provider of deception and detection technologies. Financial terms of the deal were undisclosed.

Oct. 18. Resolver, maker of a risk management platform, announces acquisition of RiskVision. It says purchase will extend its ability to contain the risk of data breaches for its clients. Financial terms of the deal were undisclosed.

Oct. 17. Intelligent Decisions announces acquisition of Manning Services. It says purchase is part of a new development stage for the company focused on enhancing and expanding its capabilities in cybersecurity, advanced analytics and cloud migration. Financial terms of the deal were undisclosed.

Oct. 17. Evolve IP announces acquisition of Clearlogin, an identity authentication technology provider. It says purchase will add Identity-as-a-Service feature to Evolve’s OneCloud platform, open up new international sales opportunities and establish a presence in the rapidly expanding identity and access management market. Financial terms of the deal were undisclosed.

Oct. 11. DXC Technology announces merger of its US government business with  Vencore Holding Corporation and KeyPoint Government Solutions. The new company resulting from the merger will offer solutions in cybersecurity, big data analytics, cloud engineering, enterprise IT services and systems engineering to federal government.

Oct. 10. IDdriven, a provider of identity and access management services, announces intent to purchase 100 percent of the outstanding shares of ioSafe, a disaster proof data storage company. Financial terms of the deal were undisclosed.

Oct. 6. Guidewire Software, which offers a portfolio of products for Property and Casualty insurers, enters into definitive agreement to acquire Cyence, a risk analytics company, for $275 million.

Oct. 5. Marlin Equity Partners announces acquisition of AppRiver, a provider of cloud-based cybersecurity software and services. Financial terms of the acquisition were undisclosed.

Oct. 4. Efficient E-Solutions announces intent to acquire majority interest in Kaapagam Technologies, maker of a web application firewall and security management system designed to secure web applications from attacks. Financial terms of the deal were undisclosed. 

Oct. 2. World Health Energy Holdings, a diversified company, acquires 70 percent of Unique Cyber Group, a provider of cybersecurity solutions. Financial terms of the deal were undisclosed.

Oct. 2. Sirius Computer Solutions announces definitive agreement to acquire Forsythe Technology. Sirius says purchase will allow it to expand the depth of its solutions and services, specifically in areas of security, risk management and data center transformation. Financial terms of the deal were undisclosed.

Oct. 2. Atos, a digital transformation company, announces intent to acquire Siemens Convergence Creators. Siemens firm would enlarge Atos cybersecurity and communications solutions. Financial terms of the deal were undisclosed.

Stay tuned for the Q1 2018 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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Q3 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

Brisk cybersecurity M&A activity in the third quarter of 2017

johnmelloembossedJohn P. Mello, Jr.

Menlo Park, Calif. – Oct. 3, 2017

More than 50 cybersecurity acquisition and merger agreements were cut during the third quarter of 2017 topped by the completion of two mega deals by Northrop Grumman and HPE.

Northrop, whose cybersecurity businesses are worth an estimated $2 billion, wrapped up its buy of Orbital ATK for $9.2 billion. Of that amount, $7.8 billion was cash and $1.4 billion was assumed debt.

Meanwhile, Micro Focus acquired HPE’s software business for $8.8 billion. The pairing created one of the largest pure play software companies in the world.

Those two deals alone exceeded all activity in 2016 which, according to Hampleton Partners, was $13.4 billion.

Hampleton noted that cybersecurity M&A activity dropped precipitously after 2010, when it reached $14 billion, but has been steadily climbing since then.

Rising along with the number of deals cut has been company valuations, from 2.3 times sales in 2013 to 5.5 times sales in 2017.

Also during the period, Symantec unloaded its website security and PKI business to DigiCert for $950 million. Symantec was a buyer, too, acquiring two Israeli companies — Skycure, a mobile threat defense firm, and Fireglass, an enterprise cybersecurity provider.

SAP was a buyer, too, scooping up Gigya, a maker of a web-based platform for customer identity management and profiling, for a reported $350 million.

Two companies hammered out acquisitions exceeding $200 million. H.I.G. Capital bought all the common shares of NCI and took that provider of enterprise software and services private for $283 million. Open Text announced a definitive agreement to acquire Guidance Software for $222 million.

There were also a brace of deals breaking the $100 million mark. Mantech International bought InfoZen for $180 million, and ZTE, a Chinese telecommunications company grabbed Turkish systems integrator and military contractor Netas for $101.3 million.

TRANSACTIONS

September

Sep. 28. Tracker Capital Management acquires root9B, a provider of cybersecurity solutions and services. Financial terms of the acquisition were undisclosed.

Sep. 27. SAP acquires Gigya, maker of a web-based platform for customer identity management and profiling, for a reported $350 million.

Sep. 22. Accounting firms JPMS Cox of Arkansas and HoganTaylor of Oklahoma announce merger. JPMS Cox notes HoganTaylor will add specialized services like cybersecurity to its portfolio.

Sep. 19. Mantech International announces intent to  acquire InfoZen for $180 million in cash. InfoZen is an IT solutions provider whose domain expertise includes threat monitoring and assessment capabilities in support of critical national and homeland security missions.

Sep. 19. Ann Arbor Networks and Bluetrain Computers, two network security companies, announce merger into new company, A2 CyberSecurity.

Sep. 19. Swedish maker of door opener solutions Assa Abloy signs agreement to acquire Mercury Security, a Long Beach, Calif. maker of controllers for physical access control . Financial terms of the acquisition were undisclosed.

Sep. 18. Northrop Grumman, a defense contractor, announces completion of acquisition of Orbital ATK for $9.2 billion — $7.8 billion in cash and $1.4 billion in debt assumption. Orbital’s products include rocket motors, missiles and electro-optical countermeasure hardware.

Sep. 13. 10Pearls acquires ProQual-IT, an information technology services provider specializing in biometrics and identity management. Financial terms of the acquisition were undisclosed. 

Sep. 13. Silent Circle, a maker of enterprise-class mobile security, privacy and compliance software, acquires Kesala, a provider of solutions for securing data across platforms. Financial terms of the acquisition were undisclosed.

Sep. 12. Avi Networks acquires StacksWare, which offers software-as-a-service elastic load balancing, application analytics and web application firewalls. Financial terms of the acquisition were undisclosed. 

Sep. 11. Rackspace announces plans to purchase Datapipe, which offers services for infrastructure management, cloud migration and cybersecurity project management. Financial terms of the acquisition were undisclosed, but it has been reported that the deal is the biggest in Rackspace’s history.

Sep. 11. Falanx Group acquires AuditSec Services, which provides cybersecurity guidance to some of the world’s largest petrochemical, pharmaceutical and industrial companies. Financial terms of the acquisition were undisclosed.

Sep. 11. Media rating company Nielsen acknowledges it has acquired some technology assets and key personnel from Sentrant Solutions, maker of solutions to combat fraudulent online advertising. Financial terms of the acquisition were undisclosed.

Sep. 8. Polemos announces agreement to acquire cybersecurity company SecurLinx  Corp. by issuing stock worth £17.8 million. In addition, Polemos will also advance a loan of $500,000 to SecurLinx, of which $300,000 is due when the acquisition is completed and the remainder 21 days later.

Sep. 5. Sunayu acquires Fractal Technology, a mobile security company. Financial terms of the acquisition were undisclosed.

Sep. 1. HPE completes sale of its IT management, big data and security lines to Micro Focus for $8.8 billion.

August

Aug. 31. Juniper Networks announces intent to acquire Cyphort, a security analytics company. Financial terms of the acquisition were undisclosed.

Aug. 31. Jacob Engineering Group announces acquisition of Blue Canopy, a data analytics, cybersecurity and application development firm. Financial terms of the acquisition were undisclosed.

Aug. 28. Trumpf International acquires C-Labs Corp. for a reported $10 million. C-Labs makes software that provides a secure way for IoT devices to share information outside the factory floor.

Aug. 28. Inside Secure, a mobile and IoT cybersecurity company, completes acquisition of Meontrust, maker of a flexible authentication, identification and authorization technology. The deal is an all-cash transaction worth an estimated €5 million and includes an earn-out payable in 2019 and 2020, depending on the meeting of certain business targets.

Aug. 28. Forcepoint, a cybersecurity company created by Raytheon through Websense, acquires RedOwl, a security analytics firm. Financial terms of the acquisition were undisclosed.

Aug. 22. Big Four accounting and professional services firm EY acquires Australian cybersecurity firm Open Windows Identity. EY states acquisition will be the central platform for a new identity management advisory services offering aimed at the Asia-Pacific region. Financial terms of the acquisition were undisclosed. 

Aug. 16, Data Systems Analysts acquires Project Performance Company, a solutions provider specializing in enterprise systems development and integration, knowledge management, cybersecurity, energy management and environmental sustainability. Financial terms of the acquisition were undisclosed. PPC will be DSA business unit supporting programs at U.S. Department of Justice, National Archives and Records Administration, Environment Protection Agency and the Commonwealth of Virginia.

Aug. 16. StorTech acquires South African cybersecurity consultancy GRCBizassurance. StorTech states GRC team will be absorbed into its cybersecurity division, which will be led by former GRC CEO Caesar Tonkin. Financial terms of the acquisition were undisclosed.

Aug. 15. H.I.G. Capital announces completion of acquisition of all outstanding common stock of NCI, a provider of enterprise software and services, including  cybersecurity and information assurance solutions, to U.S. defense, intelligence, health and civilian government agencies. Transaction, which allows H.I.G. to make  NCI a private company, is valued at $283 million.

Aug. 15. Fidelus Technologies announces acquisition of networking and security services group of Something Digital. Financial terms of the acquisition were undisclosed.

Aug. 15. Webroot, an endpoint security company, acquires Securecast, a security awareness training platform. Financial terms of the acquisition were undisclosed.

 Aug. 12. Cameo Resources Corp. signs letter of intent to acquire all outstanding shares of Pinot Trading, a telecom hardware provider and developer of applications and platforms for the support of crypto currencies. Financial terms of the acquisition were undisclosed.

Aug. 11. Accenture completes acquisition announced in June of Phase One Consulting Group, which delivers secure cloud solutions to U.S. cabinet departments and agencies. Financial terms of the acquisition were undisclosed.

Aug. 3. Chinese telecommunications company ZTE announces completion of acquisition of a majority stake in the Turkish systems integrator Netas. ZTE says it will help expand the Turkish company’s products, including its cybersecurity solutions, to a greater number of international markets. When announced in December, deal was valued at $101.3 million.

Aug. 2. Symantec sells its website security and PKI solutions business to DigiCert for some $950 million in cash and 30 percent of DigiCert’s common stock at the close of the transaction, which is expected in the third quarter of fiscal 2018.

Aug. 1. Zeneth Technology Partners announces merger with PierceMatrix, a software company that helps organizations identify and remove threats in near real time through the use of global and artificial intelligence. PierceMatrix will be added to Zeneth’s new commercial security service, ZenOpz, aimed at small and mid-sized businesses.

July

Jul. 31. Trillium announces acquisition of CanBusHack, one of the oldest automotive cybersecurity consulting and penetration testing companies in the world. Financial terms of the acquisition were undisclosed.

Jul. 30. Irish tech investment firm The Lucey Fund acquires PixAlert, a data risk discovery company, for €2.4 million.

Jul. 28. Altran acquires Information Risk Management, a cybersecurity consultancy based in the United Kingdom. Financial terms of the acquisition were undisclosed.

Jul. 27. Open Text announces definitive agreement to acquire Guidance Software for about $222 million. Guidance  is known for its EnCase digital investigations software. Its software partners include Box, Cisco, Dropbox and Intel.

Jul. 27. One Equity Partners, a private equity firm, acquires Lutech, an Italian  system integrator with software products for finance, healthcare, IoT and cybersecurity. Financial terms of the acquisition were undisclosed.

Jul. 27. Japanese investment bank Daiwa Securities Group acquires Signal Hill, a Maryland advisory firm. Signal Hill will be combined with Sagent Adisors in New York City to form DCS Advisory, which will be an affiliate of Daiwa. About 85 percent of Signal Hill’s business is in advising on mergers and acquisitions in cybersecurity, healthcare information technology, financial technology, mobility software and education. Financial terms of the acquisition were undisclosed.

Jul. 26. Shearwater Group acquires Newable Consulting, a provider of risk, governance and  cybersecurity assurance services, for £600,000, with the potential for another £100,000, depending on company performance. Newable is currently the preferred supplier of General Data Protection Regulation (GDPR) advice through the London Digital Security Centre, a joint venture launched by the Mayor of London, with the Metropolitan Police and the City of London Police.

Jul. 24. Application security testing company Checkmarx acquires Codebashing, an app security education firm. No financial details were disclosed, but it was reported the deal was for between five and 10 million dollars.

Jul. 21. Bloomberg reports Snap, maker of the popular Snapchat social app, has hired the entire staff of Strong.Codes, producer of software tools designed to obscure software code to prevent piracy. The new hires will continue working in Switzerland where Strong.Codes was located before it was closed down.

Jul. 19. Avast acquires Piriform, maker of CCleaner, a popular system cleaning program for desktop computers and mobile phones. Financial terms of the acquisition were undisclosed.

Jul. 18. Subsystem Technologies acquires KMS Solutions, a provider of systems engineering and technical assistance services to the U.S. Defense Department and intelligence community. Financial terms of the acquisition were undisclosed.

Jul. 18. Rapid7 acquires Komand, a maker of software tools for automating security tasks. Deal price is reported at $50 million, including cash, stock and earn-outs.

Jul. 17. Mastercard announces agreement to acquire Brighterion, an artificial intelligence software company. It notes Brighterion’s Smart Agent technology will be added to Mastercard’s existing suite of security products already using AI. Financial terms of the acquisition were undisclosed.

Jul. 13. Cisco acquires Observable Networks, a St. Louis provider of real-time network behavior monitoring. Financial terms of the acquisition were undisclosed. During Observable’s last round of funding in 2016, the company was valued at $16 million.

Jul. 11. Symantec announces agreement to acquire Skycure, an Israeli mobile threat defense company. Financial terms of the acquisition were undisclosed.

Jul. 11. Nuvias acquires DCB, a Belgium-based value added distributor for companies such as Kaspersky Lab, WatchGuard, Trustwave and Centrify. Financial terms of the acquisition were undisclosed.

Jul. 11. HyTrust acquires DataGravity, a secure storage company. Financial terms of the acquisition were undisclosed. HyTrust recently raise $36 million in Series E round of funding. It says some of that money will be used for the DataGravity acquisition.

Jul. 7. StarHub announces it will acquire remaining 49 percent of stock in Accel Systems & Technologies in a deal with an aggregate cash consideration of $18.9 million. Accel is a cybersecurity consultancy and service provider located in Singapore.

Jul. 6. Symantec announces plans to acquire Fireglass, an Israeli enterprise cybersecurity company. Financial terms of the acquisition were undisclosed.

Jul. 6. Data Systems Analysts acquires Project Performance Company, which provides government IT services for enterprise systems development and integration, information and knowledge management, cybersecurity, information assurance, energy management and environmental sustainability. Financial terms of the acquisition were undisclosed.

Jul. 5. National Technologies Associates acquires V1 Analytical Solutions, a provider of intelligence and information solutions to U.S. government. Financial terms of the acquisition were undisclosed.

Jul. 5. Ivanti acquires  RES Software, a secure, automated workspace and identity provisioning company. Financial terms of the acquisition were undisclosed.

Jul. 4. Big Wind Capital signs letter of intent to acquire some interests and assets of Hill Top Security, maker of a cybersecurity platform for small-to-medium size businesses.

Jul. 4. ABB agrees to acquire mission-critical communication business of Keymile Group, which offers services aimed at meeting demands of network operators for reliability, availability and cybersecurity. Both parties agreed not to disclose the value of the deal.

Stay tuned for the Q4 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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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 Q3 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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