Cybersecurity Acquisitions on the Rise

The cybersecurity industry is experiencing strategic M&A activity as major security breaches are on the rise.  With renowned, trusted firms such as Equifax and Deloitte among the victims, many companies are increasing their investments in cybersecurity.

The facts:

  • Transaction volume for this space is up 93% from 2016. There have been 122 transactions year-to-date. Cyber companies are selling for an average 9.4x revenue and 55.4x EBITDA.
  • Future business leaders must be prepared to defend against these threats. Analysts predict annual cybercrime damages of $6 trillion by 2021 in the public and private sectors combined.
  • Venture capital and private equity groups have already financed more than 108 cybersecurity transactions this year. The abundance of capital providers is due to accelerating market growth and industry fragmentation.

In a world where security is tantamount to survival, this trend is likely to continue into the foreseeable future.

 

Source:

“Why Mission-Critical Cybersecurity is Driving High Valuations”, security sales.com, October 4, 2017.

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Tracy Lamb

Valuation
tlamb@pcecompanies.com
Orlando Office

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