Security Strategy, Plan, Budget, Risk Assessments/Management

Cybersecurity M&A growth seen to continue

Cybersecurity mergers and acquisitions may reach record-highs this year, with M&A activity already reaching nearly $27 billion in the first quarter of 2022 alone, compared with $70.4 billion and $27.5 billion for the entirety of 2021 and 2020, respectively, reports SecurityWeek. However, cybersecurity financing activity of $5.4 billion during the first three months of 2022 may indicate flat or slightly lower figures by year-end, compared with $25.6 billion in 2021 and $11.1 billion in 2020, according to a report from Progress Partners. Progress Partners Managing Director Eric Bell noted increased investor caution due to a bullish economy and elevated corporate cybersecurity spending brought by the ongoing Russian invasion of Ukraine, as well as pandemic-related work-from-home measures. "Where I see a little bit of a change in the market is in the tone of the conversations I’ve been having with investors. They’re not as willing to enter companies at such high valuations. They are looking at current investments and doubling down on the winners and are not maybe deploying as much capital or risk at this moment into earlier stages or companies that don’t have proven track records," said Bell.

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