Analysts predicted that cybersecurity M&A activities will continue to spread in 2025 as more large security firms try to enhance their capabilities. Smith and Pilgrim predicted a particularly strong focus by strategic acquirers on next-generation technologies and capabilities such as AI that can improve productivity and reduce the burden of certain tasks, thereby alleviating the cyber skills gap. This has given a rise to the requirement of cybersecurity testing companies.
Introduction
Cybersecurity is what keeps computers, servers, mobile devices, electronic systems, networks, and data safe from malicious attacks. It is also called information technology security or electronic information security.
In 2024, numerous eye-popping M&A deals have been announced or completed. Below are the five biggest M&A deals in 2024 according to the financial value.
Cisco Completes shocking Splunk Acquisition at $28bn
On this date, March 18, US-based technology major, Cisco, finished the acquisition of Splunk valued at $28 billion. This company, Splunk, is a prominent machine data analytics platform provider whose products primarily are used for managing cyber operations.
The deal was announced first in the month of September, 2023, and it is the largest in the history of Cisco. The firm was engaged in numerous M&A activities in 2024 and announced intentions to acquire Robust Intelligence in August.
Thomas Bravo go Darktrace at $5.3bn.
Private equity giant Thomas Bravo on October 1 completed a $5.3 billion all-cash purchase of Darktrace, a UK cybersecurity company specializing in AI solutions.
“The transaction, which was disclosed by Thomas in April, will allow the company to continue supporting the independent growth of Darktrace as a separate entity.” It is one of the latest purchases by Thoma in cybersecurity. Otherwise, the company substantially focuses on the enterprise software market.
2.65 Billion Dollar Deal-Mastercard for Recorded Future
Mastercard expressed its commitment to cybersecurity with a $2.65 billion deal to acquire the threat intelligence company, Recorded Future, from its owner Insight Partners on September 12.
According to Mastercard, the real-time visibility that Recorded Future will provide into possible threats complements the firm’s identity and fraud prevention real-time decisioning and cybersecurity services.
According to the pending deal, the independent company Recorded Future is expected to close in the first quarter of 2025.
CyberArk acquires Venafi for $1.54bn
On October 1, identity and access management CyberArk completed its acquisition of Venafi from owner Thoma Bravo for a whopping $1.54 billion, following an agreement by both parties in May of 2024.
Through this merger, CyberArk and Venafi will work together to produce machine identity solutions from end to end over workloads, code, applications, IoT devices, and containers. The consideration includes approximately $1 billion in cash and $540 million in ordinary shares.
Permira Completes $1.3billion Majority Stake in BioCatch
“The private equity firm Permira announced on September 9 that it had completed an investment in behavioral biometrics specialist BioCatch at a valuation of $1.3 billion for a majority stake. This acquisition is expected to further drive BioCatch’s rapid delivery of solutions for digital fraud detection and financial crime prevention, with behavioral biometric intelligence signified by Permira as a powerful value proposition for detecting AI-associated digital fraud-” thus defined the reason for the investment.
In The End………
Cybersecurity is still a vibrant domain for mergers and acquisitions notwithstanding the current adversities in the economy. This fact is attested by several multi-billion dollar deals worth billions of dollars, besides putting this industry top at forthcoming ripe investments.
The demand for more consolidation in this area, in addition to increased demand for cybersecurity testing companies to offer a multi-faceted portfolio of services, will be pushing towards a lot greater M&A in 2025.
Frequently Asked Questions FAQs
What is meant by cyber security?
Cybersecurity is what keeps computers, servers, mobile devices, electronic systems, networks, and data safe from malicious attacks. It is also called information technology security or electronic information security.
What are some types of cyber security?
· Application security
· Cloud security
· Critical infrastructure security
· Data security
· Endpoint security
· IoT (Internet of Things) security
· Mobile security
· Network security.
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