The cybersecurity domain is undergoing rapid changes owing to the rise in frequency and complexity of cyber threats.
As the digital world expands, the risk of cyberattacks is increasing, and security experts must stay vigilant to safeguard against potential breaches.
As digital risks grow, big companies are acquiring others in the cybersecurity field to enhance their capabilities and stay ahead of evolving threats.
Acquisitions provide access to the following key things:-
- Advanced technologies
- New talent
- Threat intelligence
These key things allow these companies to strengthen their overall security posture and offer more comprehensive solutions to clients in an ever-changing threat landscape.
Impact of mergers & acquisitions (M&A)
Cybersecurity market is set to grow from $153.6bn (2022) to $424.9bn (2030). While the mergers & acquisitions (M&A) are significantly impacted by the following key factors:-
- Risk aversion
- High asset values
- Capital costs
However, the limited international support prompts cybersecurity firms to merge for the required market demands that must be fulfilled.
Here below, we have mentioned all the key impacts of mergers & acquisitions (M&A) of cybersecurity companies:-
- Enhanced Capabilities
- Expanded Product Portfolio
- Increased Market Share
- Improved R&D (Research and Development)
- Access to Talent
- Streamlined Operations
- Global Expansion
- Improved Threat Intelligence
- Compliance and Regulation Adherence
- Economies of Scale
Prominent Cybersecurity Acquisitions 2023
Here below, we have mentioned all the top 10 prominent cybersecurity acquisitions of 2023:-
Now let’s discuss the above-mentioned prominent Cybersecurity Acquisitions of 2023:-
Cisco Acquired Splunk
Cisco acquires Splunk for $28 billion in cash, aiming to bolster AI-enabled security. The deal, at $157 per share, enhances strength and shareholder value.
The merger accelerates Splunk’s growth, encouraging innovation and global expansion. Approval from both boards anticipates finalization by Q3 2024.
Besides this, the transaction won’t affect Cisco’s share buyback or dividend program.
Broadcom acquired VMware, and this merger blends Broadcom’s engineering with VMware’s cloud expertise, promising agility in the digital era.
Broadcom’s innovation commitment shines in industry-leading products, and this merger will provide the ability to explore the power of VMware Cloud Foundation by reshaping private and hybrid clouds.
The union promises enhanced solutions and accelerated innovation in this transformative generation.
Accenture Acquired Innotec Security
Accenture acquired Innotec Security, a top Spanish cybersecurity-as-a-service provider, on November 2, 2023, strengthening Accenture’s cybersecurity capabilities and market presence in Spain.
Innotec Security, founded in 2002, boasts 500 cybersecurity experts and a wide range of services. The acquisition from Entelgy Group expands Accenture’s workforce and expertise in cybersecurity-as-a-service.
With 19 previous acquisitions, Accenture is a global leader in managed security services, securing the top spot in Gartner’s 2022 report. Besides this, the deal marks a strategic step in cybersecurity advancement.
Thales Acquired Imperva
Thales acquires a top-notch US cybersecurity firm known for data and app security at $3.6B. A global tech leader, Thales spans Defense, Aeronautics, Space, and Digital Identity.
A cyber leader, Imperva secures apps, APIs, and data with integrated edge, app, and data security. Partnership boosts both data and app security, propelling Thales into the app security market. Combined revenue exceeds €2.4B.
Deal impacts three key areas, finalizing in 2024 pending approvals.
SentinelOne Acquired Krebs Stamos Group
SentinelOne tackles cyber threats with PinnacleOne, a strategic advisory group led by Krebs and Stamos. Launched at OneCon, it offers holistic risk management for businesses amid tech, cybersecurity, and geopolitics complexities.
PinnacleOne, a think tank and advisory, aids executives in navigating modern risks. Krebs, ex-CISA director, is the Chief Intelligence Officer, while Stamos, ex-Facebook CSO, is the Chief Trust Officer. Acquisition of KSG enhances SentinelOne’s security capabilities.
IBM Acquired Polar Security
Under CEO Arvind Krishna, IBM acquired 5th company, Polar Security, focusing on cloud and AI capabilities. With 30+ acquisitions since April 2020, IBM addresses the “Shadow Data” surge amid COVID-19.
Polar Security offers Data Security Posture Management (DSPM) to locate and secure sensitive data across storage locations.
Automation detects structured or unstructured data, provides remediation, and generates security reports.
IBM plans to integrate Polar Security’s DSPM tech with Guardium for comprehensive data security, and for now, the acquisition price is undisclosed.
Proofpoint Acquired Tessian
Proofpoint offers cloud-based solutions to prevent threats and protect sensitive data; with Tessian acquisition, it targeted misdirected emails and data exfiltration.
However, Tessian’s AI platform enhances Proofpoint’s email data loss prevention service.
This helps in mitigating accidental and malicious data loss. The integration of Microsoft 365 and Google Workspace ensures seamless email security implementation.
Okta Acquired Spera Security
Okta acquired Spera Security, a rising star in Identity security, and it focuses on uncovering threats within SaaS and infrastructure applications.
The strategic union aims for a robust “Zero Trust” security posture. With 86% of breaches from Identity-related attacks, the alliance addresses phishing and social engineering challenges.
Okta and Spera offer a beacon of hope, providing comprehensive visibility and threat monitoring in the expanding SaaS and cloud landscape. The alliance is a commitment to empower users for a more secure digital future.
Cisco Acquired Isovalent
Cisco boosts cloud security dominance with Isovalent acquisition, a pioneer in open-source cloud-native networking.
The union uses Cisco’s Security Cloud vision to reshape cyber risk management across diverse cloud infrastructures.
The acquisition reinforces Cisco’s role in open-source foundations, positioning it as a cornerstone. Isovalent’s integration into Cisco’s Security Business Group is set for Q3 FY 2024.
Check Point Acquired Perimeter 81
Check Point acquires Perimeter 81 for $490M, accelerating secure access adoption globally. Perimeter 81, a Forrester Zero Trust Wave leader, brings cloud and on-device protection to over 3,000 customers.
Integration into Check Point Infinity architecture enhances threat prevention, creating a unified solution for network, cloud, and remote users.
The acquisition supports Check Point’s vision for the fastest, most secure SASE solution.