Cybersecurity mergers and acquisitions. PHOTO: Cybercrime Magazine.

Q2 2019 Cybersecurity M&A Report: More Than $7B In Deals During First Quarter

Blackberry, CACI are biggest spenders for period ending March 31

John P. Mello, Jr.

Northport, N.Y. – Apr. 15, 2019

Cybersecurity Ventures tracks M&A deal flow covering startups, emerging players, and the largest tech vendors.  Read on for activity in the most recent quarter.

March

Mar. 28. Palo Alto Networks, of Santa Clara, Calif., a cybersecurity company, completes acquisition of Demisto, of Cupertino, Calif., a maker of security orchestration, automation, and response technologies, for $560 million to be paid in cash and stock, subject to adjustment.

Mar. 27. NuMSP, of Clifton, N.J., a managed service provider that offers cybersecurity and IT services to the SMB market, announces acquisition of Boise, Idaho, assets of Corporate Technologies, of Minneapolis, Minn., an IT solutions company. Financial terms of the deal were undisclosed.

Mar. 27. Novatech, of Nashville, Tenn., a provider of managed IT and print services, announces merger with DynaSis, of Alpharetta, Ga., a managed IT, cybersecurity, and cloud solutions company.

Mar. 26. Carbonite, of Boston, a cloud-based data protection provider, closes acquisition of Webroot, of Broomfield, Colo., an endpoint security, network protection, security awareness training, and threat intelligence services company, for $618.5 million in cash.

Mar. 25. cPacket Networks, of San Jose, a network performance monitoring and packet broker solutions provider, announces agreement to acquire the SolarCapture appliance business of Solarflare, of Irvine, Calif. The business provides network traffic capture capability for a variety of IT NetOps and SecOps applications including compliance, service-level agreement monitoring, performance monitoring, security analytics, network forensics, and record keeping. Financial terms of the deal were undisclosed.

Mar. 25. Light Professional IT Services, of Arlington, Va., a provider of IT, cloud, cyber, and infrastructure solutions to the U.S. government, announces acquisition of Phacil, also of Arlington, a diversified software, cybersecurity, systems engineering, and managed services provider to the U.S. government. Financial terms of the deal were undisclosed.

Mar. 22. NSEIT, of Mumbai, India, a global IT firm that focuses on the financial services industry, announces acquisition of Aujas Networks, of Bangalore, India, a provider of security solutions and services in the areas of security vulnerability, CMS, and identity and access management. Financial terms of the deal were undisclosed.

Mar. 18. Nixu, of Espoo, Finland, a cybersecurity company, purchases threat intelligence team of the Vesper Group, of  Johanneshov, Sweden, for €1.6 million.

Mar. 14. Big Four accounting firm Deloitte, based in New York City, announces acquisition of Converging Data, of Sydney, Australia, a big data, artificial intelligence, and security orchestration company. Financial terms of the deal were undisclosed.

Mar. 13. Mastercard, of Purchase, N.Y., a financial services company, announces agreement to purchase Ethoca, of Toronto, Ontario, Canada, a provider of technology that enables fast detection and cracking of forgery in digital trade. Financial terms of the deal were undisclosed.

Mar. 13. NXTsoft, of Birmingham, Ala., a cybersecurity and data company, announces acquisition of Digitel Corp., of Atlanta, a cloud computing and business phone solutions provider. Financial terms of the deal were undisclosed.

Mar. 12. CGI, of Montreal, Quebec, Canada, a technology consulting firm, announces intent to purchase Acando, of Stockholm, Sweden, a company focused on strategy and operations consulting, sales and marketing, IT strategy and architecture, app development, and cybersecurity, for CA$614.7 million, which includes assumption of $13.3 million in debt.

Mar. 12. Amazon, of Seattle, closes acquisition of Eero, of San Francisco, a mesh  Wi-Fi router maker and cybersecurity service provider. Financial terms of the deal were undisclosed.

Mar. 12. Bridgepoint Education, based in San Diego, a for-profit college operator, agrees to acquire Fullstack Academy, a provider of cybersecurity and web development education with campuses in Chicago and New York City, for $17.5 million in cash and 4.75 million shares in Bridgepoint stock. Bridgepoint will become Zovio on April 15 and move its headquarters from San Diego to Chandler, Ariz.

Mar. 11. Dapasoft, of Toronto, Ontario, Canada, a healthtech company, announces merger with iSecurity, also of Toronto, a privacy and security consulting provider. The companies say the merger will benefit clients looking for a cloud integration platform that comes with cybersecurity and DevSecOps.

Mar. 6. Comcast, of Philadelphia, a media and technology company, announces acquisition of BluVector, of Arlington, Va., maker of an AI-driven security platform. Financial terms of the deal were undisclosed.

Mar. 5. Cyber Security 1 AB, of London, UK, a cybersecurity company, announces agreement setting out terms for acquisition of IntaForensics, of Nuneaton, Warwickshire in the UK, a digital forensics services provider. Financial terms of the deal were undisclosed.

Mar. 5.  NTT Security Corporation, of Tokyo, Japan, a network security company, announces agreement to acquire WhiteHat Security, of Santa Clara, Calif., an application security provider. Financial terms of the deal were undisclosed.

Mar. 1. ManTech International Corporation, of Herndon, Va., a national security technology company,  announces agreement to acquire Kforce Government Solutions, of Fairfax, Va., a provider of transformation management, data management, and analytics solutions to federal health and defense agencies, including the Department of Veterans Affairs, for $115 million in cash.

Mar. 1. CACI International, of Arlington, Va., an IT solutions and services provider for intelligence, defense, and federal civilian customers, announces acquisition of LGS Innovations, of Herndon, Va., a provider of real-time spectrum management, C4ISR, and cyber products and solutions to the intelligence community and the Department of Defense. CACI states purchase of LGS and acquisition in January of Mastodon Design, of Rochester, N.Y., a designer and maker of rugged signals intelligence, electronic warfare, and cyber operations products and solutions, is expected to cost the company $975 million.

February

Feb. 27. NuMSP, of Clifton, N.J., a managed service provider offering IT and cybersecurity solutions, announces acquisition of Zero1Zero, of Minneapolis, an MSP offering IT solutions for small and mid-sized businesses. Financial terms of the deal were undisclosed.

Feb. 25. Huntington Ingalls Industries, of Newport News, Va., a military shipbuilding company, completes acquisition of Fulcrum IT Services, of Centreville, Va., an information technology and government consulting provider. Financial terms of the deal were undisclosed.

Feb. 25. ConnectWise, of Tampa, Florida, an MSP software provider, announces it will be acquired by Thoma Bravo, of Chicago, a private equity company with an extensive cybersecurity portfolio. Financial terms of the deal were undisclosed.

Feb. 22. Entrust Datacard, of Minneapolis, a provider of trusted identity and secure issuance solutions, announces agreement to acquire nCipher Security, of Cambridge, Cambridgeshire in the UK, a standalone business within the Thales Group that focuses on General Purpose Security Modules. Thales had to sell nCipher to meet regulatory clearance needed to purchase Gemalto, of Amsterdam, the Netherlands, a digital security company that offers mobile connectivity, payment technology, and data protection solutions, for $5.67 billion.

Feb. 21. Blackberry, of Waterloo, Ontario, Canada, a maker of technology that allows endpoints to trust one another, communicate securely, and maintain privacy, announces completion of acquisition of Cylance, of Irvine, Calif., a provider of cybersecurity products and services using artificial intelligence and machine learning, for $1.4 billion.

Feb. 12. Symantec, of Mountain View, Calif., a cybersecurity company, announces acquisition of Luminate Security, of Palo Alto, Calif., a pioneer in software-defined perimeter technology. Financial terms of the deal were undisclosed.  

Feb. 11. GBG, of Chester, Cheshire in the UK, a maker of identity verification solutions, announces intention to acquire IDology, of Atlanta, a provider of identity verification and fraud prevention services, for $300 million.

Feb. 7. Haven Cyber Technologies, of London, UK, a managed security services provider, announces acquisition of Onevinn, of Göteborg, Vastra Gotaland, Sweden, a Microsoft cloud security services and solution company. Financial terms of the deal were undisclosed.

Feb. 1. Barracuda Networks, of Campbell, Calif., a cloud security technology company, purchases Managed Workplace, the remote monitoring and management product line of Avast Software, of Prague, Czech Republic, a maker of security software. Financial terms of the deal were undisclosed.

Feb. 1. CACI International, of Arlington, Va., an IT solutions and services provider for intelligence, defense, and federal civilian customers, completes acquisition of L-3 National Security Solutions, of Reston, Va., a provider of strategic solutions, services, and products for the intelligence and military communities, for outstanding NSS shares worth $550 million.

Feb. 1. Orange, of Paris, France, a telecommunications company, announces acquisition of SecureData Group, of Maidstone, Kent in the UK, a cybersecurity services provider, and its consulting arm, SensePost. Financial terms of the deal were undisclosed.

January

Jan. 29. Sophos, of Abingdon, Oxfordshire in the UK, a cybersecurity software company, announces acquisition of DarkBytes, of San Jose, Calif., maker of a unified endpoint protection platform. Financial terms of the deal were undisclosed.

Jan. 29. Safe-T, of Herzliya, Israel, a provider of software-defined access solutions for the hybrid cloud, announces its intent to purchase an unnamed Israeli-based business proxy network cloud vendor. Safe-T said in a statement it will purchase all issued and outstanding shares of the mystery company, the value of which it estimates to be $9.7 million to be paid in a combination of equity and cash. An earn-out payment in 2020 may also be paid based on the company’s financial performance.

Jan. 29. NuMSP, of Clifton, N.J., a managed service provider offering IT and cybersecurity solutions, announces acquisition of Salient IT, of Roseville, Calif., an MSP for small and mid-sized businesses. Financial terms of the deal were undisclosed.

Jan. 22. Adjust, of Berlin, Germany, a mobile ad measurement and fraud prevention company, announces intent to acquire Unbotify, of Tel Aviv, Israel, a bot detection startup. Financial terms of the deal were undisclosed.

Jan. 16. Onapsis, of Boston, an ERP cybersecurity and compliance company, agrees to acquire Virtual Forge, of Heidelberg, Germany, a provider of solutions to automatically prevent, detect, and remediate cybersecurity and compliance risks in customizations and extensions of SAP applications. Financial terms of the deal were undisclosed.

Jan. 15. Zix Corporation, of Dallas, an email security company, agrees to acquire AppRiver, of Gulf Breeze, Fla., a cloud-based cybersecurity provider, for $275 million in cash.

Jan. 13. WorkJam, of Montreal, Quebec, Canada, a digital workplace solutions provider, completes acquisition of Peerio Technologies, also of Montreal, a maker of a secure messaging and file sharing platform. Financial terms of the deal were undisclosed.

Jan. 11. Simpatico, of Lubbock, Texas, a cybersecurity and IT company, announces merger with Teksinc, of Dallas, a managed network services company. Cory Ruthardt, Simpatico’s chief information officer, said in a statement the merger will create a strong and affordable cybersecurity solution for small- and medium-sized businesses.

Jan. 10. Sophos, of Abingdon, Oxfordshire in the UK, a cybersecurity software company, completes acquisition of Avid Secure, of San Francisco, a provider of end-to-end security for public cloud deployments. Financial terms of the deal were undisclosed.

Jan. 9. Amazon Web Services, of Seattle, a provider of information infrastructure technology, confirms acquisition of CloudEndure, of Israel, a disaster recovery company. Financial terms of the deal were undisclosed, but reports peg it at between $200 million and $250 million.

Jan. 8. Genpact, of New York City, a digital transformation services company, completes acquisition from Booz Allen Hamilton of riskCanvas Holdings, of McLean, Va., a platform maker and provider of tailored consulting services, including financial crime compliance. Financial terms of the deal were undisclosed.

Jan. 8. ConvergeOne, of Eagan, Minn., an IT services provider of collaboration and technology solutions, completes acquisition of Venture Technologies, of Reading, Mass., a collaboration, enterprise networking, data center, cloud, and cybersecurity solutions company. Financial terms of the deal were undisclosed.

Jan. 7. Radware, a New Jersey provider of cybersecurity and application delivery solutions, announces agreement to acquire ShieldSquare, a bot management company. Financial terms of the deal were undisclosed.

Jan. 7. Parsons, of Pasadena, Calif., a defense, intelligence, security, and infrastructure engineering firm, announces it is acquiring OSGSystems, of Chantilly, Va., a geospatial intelligence and big data analytics company. Financial terms of the deal were undisclosed.

Stay tuned for the Q3 2019 edition of the Mergers and Acquisitions Report.

M&A Report Archives

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



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