The Cybersecurity Sector in the World of M&A

The cybersecurity sector in the world of M&A

You may have wondered about the importance of the cybersecurity sector in the world of M&A. In a world of ever-growing digital economies comes an ever-growing world of digital crime. With cyberattacks causing an estimated $10.5 trillion in damage by 2025, an estimated 65% of organizations are planning to increase their 2023 cybersecurity spending – making the cybersecurity sector in the world of M&A a hotly-contested and highly-lucrative sector.

Never-before-seen rates of global concern over growing cybersecurity threats are catapulting the sector’s growth and the overall cybermarket potential.

Table of contents

  1. Five reasons the cyber market potential is growing
  2. Cybersecurity in M&A
  3. Notable M&A Transactions in the Cybersecurity Sector
  4. How ONEtoONE can help you

Five reasons cybermarket potential is growing

  1. More attacks targeting smaller companies mean all customer segments demand an increase in data protection.
  2. Increased regulation on cybersecurity requirements.
  3. CISOs (Chief Information Security Officers) ensure an increased total log volume visibility.
  4. Global cybersecurity talent shortages mean an increased demand for third-party service partnerships.
  5. Customers are becoming more aware of the severe threat to their businesses and personal well-being.

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The cybersecurity sector in the world of M&A

Whilst the level of corporate transactions in most sectors has dropped from the 2021 highs, there are some indications that cybersecurity might be an outlier in 2023.

The abundant opportunities for innovation in the cybersecurity sector are partly due to the breakthrough of AI tools with near-human analytic capabilities that, in turn, have also introduced unprecedented security risks.

The most value-generating and successful M&A deals occur when the buyer and seller’s needs are met.  And, in the case of cybersecurity, a mutually-beneficial corporate match will only occur if the advisor truly understands the underlying technology needs of the buyer and seller.  This makes for less wasted time and great value realization.

At ONEtoONE, our advisors strive to understand the cybersecurity technology and needs of our clients and counterparties.

Overall, this innovative sector presents exciting prospects and opportunities for the M&A world.

For more on this topic: Paul Hager: M&A opportunities in cybersecurity, clean energy and environmental sectors.

Notable M&A transactions in the cybersecurity sector

Broadcom’s acquisition of VMware

This $61 billion acquisition of the cloud software provider VMware by the semiconductor giant Broadcom is said to be one of the largest cybersecurity deals in history.

Citrix’s merger with Vista’s portfolio company TIBCO Software

Vista’s portfolio company TIBCO Software acquired Citrix Systems, a cloud service provider, for $16.5 billion.

Thoma Bravo’s acquisition of SailPoint

VC firm Thoma Bravo acquired SailPoint, an identity management company, for $7 billion.

Read our article:  What are the biggest M&A deals of 2023?

How ONEtoONE can help you

At ONEtoONE, our global advisory infrastructure, M&A expertise, and advanced market analytics technology make us the best advisors for any middle-market M&A transaction.  But, more importantly, our advisors are best prepared to add long-term value to our clients because they fully understand the underlying technologies within these emerging cybersecurity products.  This insight allows our advisors to identify optimal matches, fitting cybersecurity companies with counterparties that will gain the greatest value in the partnership.

Our network of international partners, which specializes in a plethora of industry sectors, including cybersecurity and information technology, allows us to locate the best buyers and sellers for your company.