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Cybersecurity Mergers and Acquisitions: August 2019 Trends

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Two multi-billion dollar security-focused buyouts took center stage in August 2019 but overall financing activity shrunk to its lowest mark in four years, a new study by investment bank/consultancy Momentum Cyber said in its Cybersecurity Snapshot.

The month saw the acquisitions of Symantec’s Enterprise Assets by Broadcom for $10.7 billion & VMware’s buyout of Carbon Black for $2.1 billion.

Strategic deal volume in August spiked to 38 completed transactions (M&A + financing) totaling $13.3 billion in deal value. Of those, there were 16 M&A transactions valued at $12.9 billion and 22 financing deals worth $371 million in the month.

Here are M&A and financing deals for August 2019 highlights:

M&A activity.

  • 16 M&A deals were announced with disclosed values of $12.9 billion.
  • $13 billion enterprise value across top two M&A deals, involving public sellers.
  • Of the 16 M&A transactions in August, the most active sectors were four deals in security consulting, two in application security, two in endpoint security, and two in network security.

Financing activity.

  • Cybereason’s $200 million Series E funding led all financing rounds for August. Others included:
  • AU10TIX’s $60 million private equity deal.
  • Axonius’ $20 million Series B.
  • Securit.ai’s $18 million Series A.

Additional financing highlights:

  • 22 financing transactions completed with total capital raised of $371 million (median amount raised of $6 million).
  • 59% of total financing deals were Early Stage to Series A. Median amount raised in such deals was $3 million.
  • The most active financing sectors included: five in data security, four in risk & compliance, three in network security, and three in SecOps /IR/ threat intel.

On a 2019 year-to-date basis:

  • Financing activity totaled $5.8 billion in total volume in 290 transactions, for a 10 percent slide.
  • For the same period last year, YTD financing deal value was $6.4 billion.

Notable financing deals YTD include:

  • Cybereason raised $200 million.
  • OneTrust landed $200 million.
  • Cloudflare secured $150 million.

M&A deal value YTD totaled:

  • $19.8 billion in 113 transactions for a 23 percent.
  • In the same period last year, M&A value totaled $16.1 billion.

In addition to Symantec/Broadcom and VMware/Carbon Black, notable M&A deals among key players YTD include:

  • Jacobs acquired KeyW for $815 million.
  • Insight bought Recorded Future for $780 million.
  • Carbonite bought Webroot for $608.5 million.
D. Howard Kass

D. Howard Kass is a contributing editor to MSSP Alert. He brings a career in journalism and market research to the role. He has served as CRN News Editor, Dataquest Channel Analyst, and West Coast Senior Contributing Editor at Channelnomics. As the CEO of The Viewpoint Group, he led groundbreaking market research.