Cybersecurity M&A deal flow: List of 200 transactions in 2017

Rising tide of mergers and acquisitions in the trillion-dollar cybersecurity market.

Cybersecurity M&A deal flow: List of 200 transactions in 2017
Nick Youngson (CC BY-SA 3.0)

The cybersecurity market is expected to ring up sales of $1 trillion cumulatively between 2017 and 2021.

In 2017, more than 200 cybersecurity startups received venture funding. With a flurry of new entrants looking to grab a slice of the spending, there’s an equal amount of market consolidation.

Over the past year, the cybersecurity market saw more than 200 mergers and acquisitions. The deal flow, tracked quarterly by the Cybersecurity Ventures M&A Report, has been compiled into an annual recap for CSO readers.

2017 cybersecurity mergers & acquisitions

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 the 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 the purchase will enhance its capabilities in the enterprise cybersecurity, digital security and Internet of Things (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 the 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 the 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.

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

Nov. 29 — McAfee and SkyHigh Networks, a cloud security company, announce a 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 U.K. encryption company. Financial terms of the deal were undisclosed.

Nov. 28 — Parsons Corp., an engineering company, announces its intent to acquire Williams Electric, an integrator of hardware and software into a unified control system. Parsons says the 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 the 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. Trend Micro says the 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 include 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. The 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 -ource 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. 

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 that specializes 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 the purchase gives the 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 the 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 the 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.

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