The “epidemic” has not hesitated, the top ten cybersecurity M&A transactions in 2020

Although the world is struggling with the new crown virus pandemic in 2020, cybersecurity capital is still very active. M&A activities are basically the same as in 2019, but the scale has declined. The top ten cybersecurity mergers and acquisitions in 2019 totaled more than 30 billion U.S. dollars, while the top ten so far in 2020 totaled less than 13 billion U.S. dollars. The largest transaction in 2020 is less than half of the largest transaction in 2019. Similar to 2019, private equity firms still account for a large share of the largest transactions.

Here are the top ten cybersecurity M&A transactions so far in 2020:

1. Insight Partners acquired Veeam for US$5 billion

Insight Partners acquired Veeam for $5 billion, which is the largest public cybersecurity transaction in 2020. Although more than twice the amount of the second largest acquisition in 2020, it is only half of the largest transaction in 2019 (Broadcom’s acquisition of Symantec’s corporate business for $10.7 billion).

Backup and recovery company Veeam said that in addition to appointing senior management positions internally, it will also move its headquarters from Switzerland to the United States. Veeam’s new CEO Bill Largent said at the time that the acquisition of Insight will “help us achieve the next phase of growth, which is the development of hybrid cloud.”

This acquisition also continues the latest trend of private equity firms investing heavily in cybersecurity. All five largest transactions in 2020 were completed by private equity companies, and all mergers and acquisitions of more than $1 billion so far in 2020 involve private equity companies.

2. Symphony Technology Group acquired RSA for US$2.075 billion

In the past 14 years, RSA was first incorporated by EMC and then taken over by Dell. In 2020, RSA finally ushered in a new life. After Symphony Technology Group acquired it for more than US$2 billion, RSA became an independent company again.

RSA CEO Rohit Ghai said: “Symphony Technology Group (STG) fully supports our vision.” “Through more independent configuration, we hope to better accelerate innovation and ensure customer success through our combination of local and cloud solutions. , And expand opportunities for the partner ecosystem.”

3. Advent International acquired Forescout for US$1.4 billion

In 2020, Advent International’s acquisition of Forescout ranks third among all five deals worth more than $1 billion. Advent first announced the acquisition of Forescout for $1.9 billion in February, and then announced that it would abandon the transaction in May. Then, Forescout sued Advent, and the two companies finally agreed to reach a deal at a lower price ($1.4 billion).

Forescout CEO and President Michael DeCesare said: “We still believe that Advent and Crosspoint Capital Partners are the right partners for Forescout, and we are very happy to reach this agreement.” “We look forward to working with Advent and Crosspoint Capital Partners to complete the transaction and open the door. Open an exciting new chapter.” Crosspoint Capital Partners plays a role here as a “co-investor and advisor.”

4. Hellman & Friedman acquired Checkmarx under Insight Partners for US$1.15 billion

In addition to participating in two major acquisitions in 2020, Insight Partners also participated in a large-scale divestiture, selling application security company Checkmarx to peer PE company Hellman & Friedman at a price of slightly more than $1 billion. Insight acquired Checkmarx for US$84 million in 2015 and is currently the only cybersecurity investment in Hellman & Friedman’s portfolio.

5. Insight Partners acquired Armis for $1.1 billion

After acquiring Recorded Future for US$780 million in 2019, Insight Partners acquired Armis, an IoT security provider, for US$1.1 billion. After acquiring Veeam and Armis and selling Checkmarx, Insight’s current network security product portfolio includes Tenable, OneTrust, Thycotic and Recorded Future.

6. KBR acquired Centauri for US$827 million

Engineering company KBR Inc. acquired government cybersecurity consulting firm Centauri from private equity firm Arlington Capital Partners for US$827 million. Centauri was formed by Arlington through the merger of Integrity Applications, Xebec Global and Dependable Global Solutions in 2019, focusing on space technology, government intelligence and network services. Before being acquired, Centuri had acquired three companies in the past two years, including Electronic warfare and cybersecurity company Pretalen.

7. Fastly acquired Signal Sciences for $775 million

Content delivery network (CDN) provider Fastly acquired Signal Sciences for $775 million. Signal provides web application firewall (WAF) and runtime application self-protection (RASP) technologies to protect APIs and microservices. Fastly said it plans to combine Signal’s technology with Fastly’s current security into a new web application and API protection product [email protected] ESG analyst John Grady believes that this transaction will allow Fastly to “significantly enhance its security focus” and close the gap with its main competitors Akamai and Cloudflare.

8. LexisNexis Risk Solutions acquired Emailage (the eighth place) for USD 480 million, and acquired the ID Analytics business of NortonLifeLock (the tenth place) for USD 375 million.

Two acquisitions made by LexisNexis Risk Solutions in 2020 have entered the TOP10 list. Although it has not yet been officially confirmed, the company’s acquisition of Emailage, a fraud prevention and risk management provider, is reported to be approximately US$480 million. The company also acquired ID Analytics, an identity risk management company, from NortonLifeLock for $375 million. Both companies provide stronger customer risk analysis capabilities and will become part of LexisNexis’ business services department.

9. Palo Alto acquired CloudGenix for $420 million

After making five acquisitions worth more than $1 billion in 2019, Palo Alto is busy again in 2020. This year, the company has made two acquisitions with a total of nearly 700 million U.S. dollars; the acquisition of CloudGenix at a price of 420 million U.S. dollars and the acquisition of Crypsis Group at a price of 265 million U.S. dollars.

The acquisition of cloud-delivered SD-WAN provider CloudGenix enhanced Palo Alto’s Secure Access Service Edge (SASE) product and introduced SD-WAN functionality to the company’s platform. The purpose of the acquisition of Crysis Group is to bring better incident response And digital forensics capabilities.

Other notable cybersecurity transactions and trends in 2020

After acquiring CarbonBlack for $2.1 billion in 2019, VMware doubled its security capabilities and acquired Lastline, Octarine, and Datrium. The purpose of acquiring LastLine’s malware detection technology and Octarine’s Kubernetes security tools is to improve the Carbon Black product, and the purpose of acquiring Datrium is to improve VMware’s own disaster recovery as a service product.

After several years of large-scale transactions (including the acquisition of Sophos for US$3.9 billion last year), PE company Thoma Bravo has experienced a quiet year. The company has only made one cybersecurity acquisition in 2020-6 Acquired Exostar, a security collaboration company, at an undisclosed price.

Other smaller or undisclosed private equity company acquisitions in this field this year include Investcorp Technology Partners and Avira, Skyview and Fidelis Cybersecurity, EMK Capital and Trustonic, Marlin Equity Partners and Heimdal Security, Thompson Street Capital Partners and PKWARE, Inc. .

Large network security companies McAfee, Fortinet and FireEye all “watch more and less move” in 2020, each with only one acquisition. McAfee acquired the browser isolation startup Light Point Security to integrate into its Secure Web Gateway and MVISION UCE products. Fortinet has acquired cloud security company OPAQ Networks and will integrate OPAQ’s Zero Trust Network Access (ZTNA) into its Security Fabric platform. FireEye acquired cloud security startup Cloudvisory to add cloud workload security features to its Helix solution.

It is worth noting that large consulting companies are also launching activities around cybersecurity in 2020. Accenture (Accenture) made three acquisitions: including the startup Revolutionary Security, Context Information Security and Symantec’s network security business. Deloitte has also reached two deals with Zimbani and SecurePath.

In 2020, many IT giants have also taken actions in the field of cyber security to help protect their cloud products: IBM acquired Spanugo, a cloud network security situation management company, Microsoft acquired CyberX, an IoT security company, and HPE acquired Scytale, an identity and access management provider. .

 

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