Strategic merger and acquisition (M&A) activity in the cybersecurity segment increased in Q1 2019 with 147 transactions completed totaling $5.3B in overall deal value, according to Momentum’s Cybersecurity Market Review Q1 2019.
The quarter saw mixed year-over-year results: Value (42 M&A transactions totaling $3.3 billion) slid 28 percent from the same period last year but volume (105 financing transactions for $2 billion) amounted to a 32 percent bump from the year prior. More deals involving managed security service providers (MSSPs) were done during Q1 2019 than any other segment Momentum tracked.
Notable financing transactions
Of the $2 billion in financing volume in Q1 2019, here are the top deals:
Rubrik: $261 million
Cloudflare: $150 million
360 Enterprise Security Group: $131.2 million
Onelogin: $100 million
Contrast Security: $65 million
Illumio: $65 million
Shift Technology: $60 million
Cato: $55 million
KnowBe4: $50 million
eSentire: $47.6 million
Notable M&A transactions
Of the $3 billion in M&A value in Q1 2019, here are the top deals:
Carbonite acquired Webroot: $618.5 million
Palo Alto Networks acquired Demisto: $560 million
Perforce bought Rogue Wave: $480 million
NTT Security bought WhiteHat: $315 million
GBG acquired IDology: $300 million
Zix bought AppRiver: $275 million
Symantec bought Luminate: $170 million
Orange bought Secure Data: $157 million
Akamai bought Janrain: $125 million
ACL bought R-sam: $100 million
Here are additional high points from Momentum’s report:
Public Market Valuations
Q1 2019 continued the upward trend line from the prior quarter with public security stocks rising 19 percent.
There were no Cybersecurity IPO’s in Q1 2019.
Crowdstrike, Palantir, Tufin, and Ping Identity are expected to go public in 2019.
The most active sectors in Q1 2019 were MSSP (5), application security (4), network & infrastructure security (4), and security consulting (4).