Cybersecurity continues to remain one of the biggest concerns in global information technology in 2024 following a year that saw security incidents continue to grow at an alarming rate. After cybersecurity mergers and acquisitions dropped more than 18 % in 2023 over the prior year, a robust and active M&A environment is expected in 2024.
The introduction of artificial intelligence capabilities into many security products over the course of 2023 only increased interest in technological advancement as a means of curbing attacks. Governments and the private sector alike have been under immense pressure to address the threats from bad actors, combating a rise in hacker group-produced as-a-service malware and nation-state attacks. The continuing conflict in Ukraine and the more recent conflict in Gaza have added to worries about global cyber warfare.
Pressure for corporate boards to include cybersecurity leaders in high-level discussions has mounted, as have government initiatives to combat cybercrime and further regulate and increase compliance requirements in the industry. This has tended to boost demand and investment interest, benefitting third-party service providers and sector participants, says investment banking firm Capstone.
“Healthy demand for products and services in the Cybersecurity sector has led to a bifurcation of the market, with individual consumers supporting legacy antivirus and threat detection companies, and venture capital[1]backed AI-driven companies bolstering sector growth through technology innovation,” Capstone says in its January 2024 Cybersecurity Sector Report.
“Continued demand on both sides of the market has led to favorable projections for cybersecurity M&A growth into 2024, as buyers look to capitalize on well-performing assets with recurring revenues while also expanding innovative services and product offerings.”
Flare acquires Foretrace to enhance threat exposure management capabilities
March 26: Threat exposure management provider Flare has acquired Foretrace, a US-based data exposure company for an undisclosed amount. Montréal-based Flare said the acquisition of Foretrace and its Total Recon detection engine “further broadens our capabilities for collecting emergent threat data while also deepening our expertise, ensuring that we can be in a great position to lead the way in TEM.” Foretrace founding executives Nick Ascoli and Matt Mosley will join Flare as senior product strategist and VP of Strategic Partnerships respectively.
GitLab buys Oxeye to advance app security and governance
March 20: DevSecOps platform GitLab has acquired cloud-native application security and risk management solution Oxeye. The addition of Oxeye will accelerate its static application security testing (SAST) plans and augment GitLab’s software composition analysis and compliance tools. Oxeye’s automated cloud-native application security testing solution helps identify and resolve application-layer risks across the software development lifecycle.
Zscaler buys Avalor to add real-time AI-driven security insights and threat prevention
March 14: Cloud security company Zscaler has bought Avalor to add the capabilities of its artificial intelligence-driven Data Fabric for Security to the Zscaler Zero Trust Exchange platform. The acquisition will allow Zscaler to “more effectively identify vulnerabilities while predicting and preventing breaches,” said Zscaler CEO Jay Chaudhry. Avalor’s Data Fabric for Security ingests, normalizes, and unifies data across enterprise security and business systems to deliver actionable insights, analytics, and operational efficiencies.
UK’s Bridewell buys Arculus Cyber Security to support critical national infrastructure growth
March 13: UK cybersecurity firm Bridewell has completed its acquisition of public sector cyber security specialists Arculus Cyber Security. The acquisition, Bridewell’s first, will triple the company’s public sector revenue and strengthen its public sector footprint, aligning with the organization’s strategic focus on critical national infrastructure.
Gcore buys StackPath WAAP solution
March 6: Edge AI, cloud, network, and security solutions provider Gcore has acquired StackPath’s web application and API protection (WAAP) solution. The purchase will provide Gcore customers with an enhanced, enterprise-grade security solution, incorporating web application firewall (WAF), API security, bot protection, and Layer-7 DDoS mitigation at the edge, the company said.
CrowdStrike acquires Flow Security to expand cloud security
March 5: CrowdStrike has agreed to acquire cloud data runtime security firm Flow Security to create a platform that will provide real-time data protection spanning endpoint and cloud environments that secures data at rest and in motion. The acquisition will allow CrowdStrike to deliver native flow security DSPM capabilities through its Falcon XDR platform, enabling customers to consolidate cloud point solutions and protect the entire cloud estate.
Cycode buys Bearer to increase application security portfolio
March 5: Application security posture management (ASPM) provider Cycode has acquired Bearer to add new capabilities and strengthen its platform. Bearer provides AI-powered SAST, API discovery, and data leak protection, which Cycode said will be integrated into its ASPM product. New capabilities will include faster scanning speeds, increased precision, and an improved developer experience, Cycode said. The addition of Bearer will also provide AI-powered code resolution, data leak protection, advanced API discovery, and fully enriched risk intelligence graph capabilities.
Hornetsecurity Group acquires Vade
March 5: Cloud security and compliance SaaS provider Hornetsecurity Group has added French email cybersecurity firm Vade to its business. The merger will provide customers with a more extensive product offering, the companies said. Vade provides email security for Microsoft 365 with differentiated API-based email filtering technology for large telcos and OEMs around the world. The companies plan to release new products in 2024 via Vade´s data center. Financial terms of the deal were not disclosed.
1Password acquires Kolide
February 20: Password management platform 1Password has bought device security solution Kolide, a device health and contextual access management solution. The acquisition will extend 1Password’s platform’s ability to ensure that both the device and access requests are secure, enhancing its user-focused device security.
Armis acquires AI cybersecurity company CTCI
February 14: Asset intelligence cybersecurity firm Armis has agreed to buy privately held CTCI, or Cyber Threat Cognitive Intelligence, a privately held company specializing in AI-powered pre-attack threat-hunting technology. Armis will integrate CTCI’s technology into its Armis Centrix platform to enhance its early warning cyber intelligence system in preventing breaches, detecting attacks, and determining if an organization has been compromised.
DNV to merge its services with Nixu and Applied Risk
February 12: Global assurance and risk management provider DNV has merged its existing cybersecurity business with recent acquisitions Nixu and Applied Risk. The company said the addition of the two platforms will bring together more than 500 cybersecurity experts to safeguard demanding IT and industrial control system environments across multiple industries. Amsterdam-based industrial cyber security specialist Applied Risk was acquired in 2021 and the purchase of Helsinki-headquartered Nixu closed in December 2023. The merger will combine Nixu’s portfolio of IT and managed cybersecurity services, Applied Risk’s industrial control systems business, and DNV’s domain expertise in critical infrastructure industries. The combined businesses will begin operating under the DNV Cyber banner in mid-2024.
Cohesity to acquire Veritas data protection business, creating $7-billion company
February 8: AI-powered data security and management company Cohesity has agreed to acquire secure multi-cloud data resilience firm Veritas. Cohesity intends to combine with Veritas’ data protection business, which will be carved out. Sanjay Poonen will lead the combined organization as CEO and president, while Veritas CEO Greg Hughes will serve as a board member and strategic advisor. The combined company will continue to invest in and advance Cohesity products and services, as well as Veritas NetBackup, NetBackup appliances, and Alta data protection offerings, while working towards the delivery of an integrated solution combining the best technology across the two companies. The transaction is expected to close by the end of 2024, subject to regulatory approval and other customary closing conditions. The remaining assets of Veritas’ businesses will form a separate company named DataCo, which will comprise Veritas’ InfoScale, Data Compliance, and Backup Exec businesses.
Resilience acquires BreachQuest
Feb. 21, 2024 /PRNewswire/ — Resilience, a leading cyber risk management firm, has strategically expanded its capabilities through the acquisition of BreachQuest, an innovative incident response technology solution. This move is set against the backdrop of an evolving digital workspace and cloud-based productivity applications, highlighting the critical challenge of securing these environments amidst escalating risks. The integration aims to bolster incident response mechanisms against Business Email Compromise (BEC) attacks, a rapidly growing concern within the digital domain.
Cybersecurity provider SonicWall buys Banyan Security
January 3: SonicWall acquired security service edge (SSE) solution provider Banyan Security to add zero-trust security capabilities to its offerings. The deal will extend SonicWall’s portfolio to the cloud and provide partners and their customers with more flexibility, the company said.
“The acquisition aligns with SonicWall’s ‘best-of-suite’ strategy — which includes network, endpoint, wireless, cloud email, and threat intelligence — under a single, multi-tenant portal,” the company said in a press release. “The platform also simplifies workflows and offers unified threat visibility, enabling service providers and end users to focus on what truly matters.”
Mimecast buys Elevate Security to bolster human risk management
January 4: Email and collaboration security provider Mimecast has acquired Elevate Security to strengthen its capabilities in human risk management. Financial terms of the deal were not disclosed.
“People are historically the largest vulnerability in an organization but can also be the strongest line of defense if given the right tools and education,” Mimecast Chief Technology and Product Officer David Raissipour said in a press release. “That’s our goal with this acquisition and core to our work — manage risk by understanding human behavior in the context of a complex environment and then acting on it.”
Elevate’s security platform ingests human behavior and context data from a range of sources and then flags high-risk people using a precision risk-scoring algorithm. Mimecast said it will continue to maintain and support the existing Elevate Security customer base and has already begun to integrate its technology into Mimecast products.
Chertoff Group’s MC² Security Fund completes acquisition of Trustwave
January 5: The MC² Security Fund, an affiliate of advisory and investment firm the Chertoff Group, completed its acquisition of global cybersecurity and managed security services provider Trustwave, which offers the Fusion Security Operations platform.
The acquisition will extend the global reach of Trustwave’s offensive and defensive cybersecurity portfolio, Trustwave CEO Eric Harmon said in a statement. “This strategic partnership with MC² and The Chertoff Group serves as a testament to our ongoing innovation and commitment to delivering unparalleled cyber value.”
Trustwave provides managed detection and response (MDR), managed security services (MSS), cyber advisory, penetration testing, database security, and email security. It also operates the SpiderLabs threat research and intelligence team.
Privileged access management provider Delinea buys Authomize
January 9: Privileged access management (PAM) provider Delinea acquired Authomize to increase its capabilities to detect cloud-based threats. The purchase “will extend the Delinea Platform’s reach for comprehensive privileged controls in the cloud while expanding its role to provide a strong defense against identity-based attacks such as account takeovers, insider threats, and lateral movement,” the company said in a statement. “CIEM and ITDR capabilities will be delivered through the cloud-native Delinea Platform, adding depth to its execution of the company’s vision to extend PAM across the modern enterprise.” The acquisition also establishes for Delinea a research and development center in Israel.
Snyk acquires Helios to enhance cloud-to-code risk visibility
January 16: Developer security firm Snyk bought application runtime data capture platform Helios in a bid to enhance its cloud-to-code risk visibility. The acquisition will accelerate the evolution of its Snyk AppRisk platform and Helios’ full-stack runtime data collection and insights capabilities will be integrated into the Snyk Developer Security Platform.
“As the pace and complexity of software development continues to rapidly increase, we’ve seen our global customers reap enormous productivity gains, but often at the cost of increased risk and critical security concerns,” Snyk CEO Peter McKay said in a statement. “This acquisition was executed with those valid concerns top of mind.”
Australia’s 5G Networks buys Security Shift
January 16: Melbourne-based digital services company 5G Networks has acquired Security Shift for AUD$4 million. Security Shift provides cyber security consultancy, end-to-end managed services and outsourced IT engineering and software development, focusing on public cloud, data centre, critical infrastructure, and Australian Government ISM.
“We certainly see the importance and growth in the security area, we are constantly asked to assist our larger managed IT clients and have been restricted in the past as to what we could provide,” 5GN managing director Joe Demase said in a press release. The addition of Security Shift will “enable 5GN to unlock a number of opportunities within our customer base.”
5GN owns and operates a high-speed data network in all major Australian capital cities, Singapore, the USA, Hong Kong and New Zealand. The company also offers managed cloud solutions and managed services to optimize customers’ IT and network environments.
Staley Technologies acquires cybersecurity service division of HoganTaylor Technology
January 23: Managed IT and cybersecurity and technology integrator Staley Technologies has bought the managed service and cybersecurity service division of HoganTaylor Technology for an undisclosed amount. The deal will enhance cybersecurity services and provide an end-to-end solution for the clients of both companies, Staley said in a statement.
Staley Technologies retained all HTT employees, who are experts in cybersecurity and
technology and led by former HoganTaylor partner Cody Griffin.