Cybersecurity M&A Round-Up for February 2021
Many cybersecurity-related mergers and acquisitions were announced in February 2021, including by Akamai, Proofpoint, SentinelOne, Tenable, CrowdStrike and Palo Alto Networks.
Week of February 22
Enterprise data protection solutions provider Arcserve has merged with data management, storage and protection firm StorageCraft. The companies say their solutions complement each other and their goal is to become the “most comprehensive global provider of data management and protection solutions.”
Canada-based advanced technology, learning, health, IT and cyber security solutions provider Calian Group has announced the acquisition of Dapasoft, a company that specializes in system integration, cloud management and cybersecurity solutions. Calian says the deal, valued at CND$83 million ($65 million), will help it extend its healthcare and cybersecurity offerings.
Hybrid IT technology firm CDI announced buying Kintyre, a system integrator focused on observability and investigation platforms, cloud optimization, and security engineering. CDI hopes the investment will help it improve its capabilities in terms of cloud optimization, DevSecOps and Splunk.
Ad management and analytics technology company Flashtalking has acquired Protected Media, which specializes in ad fraud prevention and detection. Flashtalking says the deal will enable it to provide even more protection for over-the-top (OTT) and connected TV (CTV) advertising.
Cloud company Green Cloud Technologies has entered an agreement to purchase Cascade Defense, a full-service managed security service provider (MSSP), to strengthen its cybersecurity solutions.
Kaseya, which offers IT and security management solutions for managed service providers (MSPs), acquired RocketCyber, which provides a managed security operations center (SOC) platform. The acquisition will help Kaseya boost its cybersecurity offering, but RocketCyber will continue to operate as an independent business.
Cybersecurity solutions, services and training provider Proofpoint is buying data loss protection firm InteliSecure for $62.5 million in cash. Proofpoint says the deal will help it expand its people-centric managed security services.
Week of February 15
AdaCore, a provider of software development and verification tools for mission-critical and security-critical systems, has acquired Componolit, a Germany-based firm that specializes in software components and formal verification tools for trusted systems. AdaCore says the acquisition will help broaden its cybersecurity capabilities and expand its market share in Germany.
Applied Insight, a company that provides technology solutions for government organizations, announced buying Bridges Inc., a firm that provides cybersecurity, network engineering, and big data analytics to the intelligence community. Applied Insight said the acquisition will help it expand and enhance its capabilities.
Endpoint and cloud workload protection provider CrowdStrike is acquiring early-stage log analytics firm Humio for $400 million. CrowsStrike said the acquisition will help it expand its extended detection and response (XDR) capabilities.
Data security and privacy company Data443 Risk Mitigation acquired data archiving platform ArcMail following a two-year exclusive license agreement. Data 443 said the acquisition opens “new expansion opportunities and competitive markets.”
Palo Alto Networks acquired Bridgecrew, an Israel-based company that provides a codified cloud security platform, in a cash deal valued at $156 million. Palo Alto Networks said the acquisition will help its Prisma Cloud solution become the first cloud security platform to deliver security across the full application lifecycle.
Identity security solutions provider SailPoint acquired Intello, which helps organizations discover, manage, and secure SaaS applications. SailPoint said the acquisition will help it improve its Identity Platform.
Professional, technology, and management services provider Serco has acquired Whitney, Bradley & Brown (WBB) from an affiliate of HIG Capital for nearly $300 million. Serco said the acquisition of WBB, which provides program management and consulting services to the US government, will help expand its capabilities in advanced weapons acquisition, program management, wargaming, machine learning, cybersecurity, and data analytics and mission support services.
Week of February 8
Famed “Shark Tank” investor and cybersecurity entrepreneur Robert Herjavec has agreed to sell a majority stake in Herjavec Group, the security firm he founded in 2003, to investment group Apex Partners. Herjavec will remain a significant stakeholder and the firm’s CEO.
Hybrid IT solutions provider Converge Technology Solutions acquired Accudata Systems, which offers IT consulting and integration services, including for infrastructure and security. This marks Converge’s 18th acquisition. The company hopes that the latest deal will help it boost its skills and capabilities, and expand its market presence.
Datadog, a provider of monitoring and security solutions for cloud applications, will acquire SaaS security platform Sqreen, which is designed to protect enterprises against application-level attacks. Datadog aims to extend its cloud security capabilities through the acquisition.
Asian integrated security solutions provider Guardforce AI acquired a majority stake in Logic Network, a consultancy based in Hong Kong that specializes in telecoms, network operations, intelligent retail systems and technology. Guardforce AI recently also acquired Hong Kong-based penetration testing company Handshake Networking.
Landis+Gyr, a Switzerland-based provider of smart metering technology for the energy industry, acquired Rhebo, a Germany-based firm that specializes in industrial security and plant availability. Landis+Gyr, which described the deal as a perfect fit for its cybersecurity strategy, is acquiring “100% of the share capital of Rhebo GmbH for a low double-digit million USD purchase price.”
Data connectivity platform LiveRamp announced buying DataFleets, a company that has developed what it describes as a “privacy-preserving data engine that unifies distributed data for rapid access and privacy-preserving analytics.” LiveRamp has paid $68 million for DataFleets, whose technology will be integrated with LiveRamp solutions over the next months.
Endpoint security firm SentinelOne is acquiring log management startup Scalyr for $155 million. Through this acquisition, SentinelOne wants to be able to “ingest, correlate, search, and action data from any source, delivering the industry’s most advanced integrated XDR platform for realtime threat mitigation across the enterprise and cloud.”
Australian tech incubator Stone and Chalk is merging with AustCyber, the Australian Cyber Security Growth Network. The goal is to create a “secure and innovative future for Australian business by supporting founders of critical and emerging technology companies as they seek capital, customers, talent, expertise, advocacy and community.”
Vulnerability and risk management solutions provider Tenable is buying Alsid, a company specializing in Active Directory security, for $98 million in cash. Tenable will add Alsid technology to its own solutions.
British IT distributor Westcoast has acquired a minority stake in Beyond Encryption, a provider of email and communication security. The deal will help Westcoast enhance its existing product offering and it will support Beyond Encryption’s growth strategy.
Week of February 1
CDN services provider Akamai has acquired Montreal-based Inverse, a company that provides solutions designed to help organizations identify IoT, mobile and other types of devices. Akamai is hoping that the deal will help it enhance enterprise security capabilities and expand its portfolio of zero trust and SASE solutions for IoT. Financial terms were not disclosed, but Akamai said it was an all-cash transaction.
Business advisory firm Aprio announced buying Syzygy Solutions, which specializes in cybersecurity consulting and digital transformation, as well as its IT staffing company Velossent. Aprio said Syzygy’s solutions complement its own services. Velossent specializes in the placement of developers, engineers, technology leaders and recruiters, and following its acquisition by Aprio it will expand to accounting and finance staffing.
Asian integrated security solutions provider Guardforce AI acquired a majority stake in Handshake Networking, a company based in Hong Kong that provides penetration testing, vulnerability assessment, auditing, consultancy, forensics and training services. A few months ago, the companies announced teaming up for a cyber risk assessment service.
IT management software solutions provider HelpSystems announced the acquisition of Digital Defense, a company that provides threat assessment and vulnerability management solutions. HelpSystems said Digital Defense will join Core Security and Cobalt Strike in an effort to provide a comprehensive security assessment toolkit.
IntelliBridge, which provides tech (including cybersecurity), intelligence and mission support services to government organizations, acquired Alethix, which provides IT solutions to a dozen U.S. federal agencies. IntelliBridge hopes the deal will help it strengthen its technology portfolio with cloud and DevSecOps solutions.
IntelliGenesis, a company that provides intelligence, data science, cyber training, and cyber operations services to the U.S. Defense Department and intelligence agencies, announced the acquisition of CybatiWorks, which provides training and consulting services to organizations in the government, commercial, and academia sectors. IntelliGenesis said the deal should strengthen the nation’s cyber-physical capabilities for critical infrastructure, industrial control systems (ICS) and IoT.
An affiliate of global investment firm The Carlyle Group has acquired data analytics and tech company IST Research and Two Six Labs, which provides analytics and cyber security services to the Pentagon, intelligence agencies and others in charge of U.S. national security. IST Research and Two Six Labs will merge into Two Six Technologies, which will provide cybersecurity and advanced technology solutions for national security customers.
Managed network services and cybersecurity firm SageNet acquired Convergent, which provides digital signage products and services to government organizations and private sector companies. Convergent will be branded “Convergent, a SageNet Company” and both companies will operate as usual while they work on integrating their solutions.
Intelligent identity security firm Sontiq has acquired Cyberscout, a company that provides cyber products and services that are tailored for the insurance industry. Sontiq hopes the deal will help it improve its products and enable it to expand into the insurance industry.
Swiss cybersecurity and IoT company WISeKey is acquiring arago, a Germany-based firm whose AI-based solutions help businesses automate their IT processes. WISeKey hopes the resulting company will become a “leader in the cybersecurity AI-powered knowledge automation market.” Arago has been valued at roughly CHF 100 million (USD 110 million).