Mordecai Gal: cybersecurity mergers and acquisitions specialist? Now, more than ever, cybersecurity is a top priority for organizations of all sizes. Cyberattacks are routinely front-page news, and these security breaches aren’t things that “only happen to other companies” — not only is the targeted company damaged by the hack (both financially and reputation-wise), millions of individuals are routinely affected by them. The scope of cyberattacks can range from the smallest sites to large, multinational corporations and government sites, and it seems that companies of any size are exempt from being a target.
Today, cybersecurity should be the number one IT priority for businesses no matter how big or small. In an ever-changing digital world, technological threats are constantly advancing and proliferating. Cyber security is notoriously misunderstood and unfortunately, no business is immune to breaches in security. Ransomware is just as unfavourable as it sounds. It’s malware is designed to threaten and access your data, or perpetually block access to it, unless a ransom is paid. This can put your business in a stressful and financially difficult predicament; leaving you out of control and at the instruction of cybercriminals. Breaches of privacy within a company can cause a lot of problems and cybercriminals know this, hence why they often get their asking price. A fundamental, legal requirement that every company must adhere to is the most recent GDPR regulations. Disregarding reputable cybersecurity not only makes you an easy target but could make you non-compliant. Even before a cyber-attack, this places you at risk of losing staff and clients but incurring substantial fines from the ICO. There is a lot at stake, so specialist help is essential to reduce complexity and ensure optimum results.
As society becomes more digitally educated and financially driven, phishing attacks and spam tactics are evolving and increasing with each day. It is the most common way in which harmful malware, like ransomware, can latch on and spread throughout business systems. Phishing takes place in a number of ways, but most commonly gains access to a business through emails. In 2019, it was revealed that 92% of malware was delivered via email. In light of this extremely high statistic, it’s worth noting that legitimate companies will never request sensitive data via email and any URLs sent will match their actual site, as opposed to the slightly different URLs spammers use.
Mergers and acquisitions require a mix of strategic and tactical work – cybersecurity is usually an item on the tactical list. Many organizations are drawing up plans for mergers and acquisitions right now, as leaders look for growth after the pandemic slowdown, and as new business models emerge. However, weakened cybersecurity hygiene throughout the last year means that these M&A transactions elevate the risk of cybersecurity incidents. “M&A can be a breeding ground for cyberattacks and data breaches,” said Mordecai Gal, operations director at AccessHeat Inc. “Stringent due diligence that includes a focus on cybersecurity will help reduce regrets later in the deal lifecycle.” Today’s M&A plans need to include cybersecurity at several strategic and tactical points, to address growing scrutiny from regulators and other evolving cybersecurity risks.
The industry saw many of its biggest players pursue acquisitions throughout 2020, into 2021. Accenture bought Symantec’s Cyber Security Services business; CrowdStrike bought Preempt Security and Humio; Cisco confirmed its plans to acquire Kenna Security, Splunk snapped up TruSTAR, and Imperva agreed to buy CloudVector. Ivanti acquired MobileIron and Pulse Secure, announcing both at the same time late last year. These deals show a few key patterns. Large security companies are filling in the gaps in their product strategies with smaller startups, while private equity firms are taking more established businesses, presumably to fine-tune them and later refloat them, industry expert say. The past year and a half has been an interesting time for the security industry, which has been an active space for mergers and acquisition in recent years.
Recent cybersecurity consolidation news: US financial software company Intuit (NASDAQ: INTU) has announced that it has completed the acquisition of Israeli application programming interface (API) security technology for enterprises company Imvision. Imvision develops technology that enables enterprises to automatically discover, test and protect against attacks, by monitoring API traffic to identify threats and vulnerabilities. Financial details about the deal were not disclosed although media reports say that Intuit is paying $50 million for Inuit. Founded in 2014 by Sharon Mantin, VP R&D Yossi Barshishat and Eli Plotnik, Imvision’s platform is able to auto-discover APIs based on network traffic, classify them using machine learning, identify data exposure, and detect anomalous user and data activity.
Crossword Cybersecurity PLC said Tuesday it has agreed to acquire an undisclosed cyber-threat company for 1.5 million pounds ($2 million). The U.K. cybersecurity technology commercialization company said that it will pay for the transaction in a mixture of cash and shares, and that some of the payment will be deferred. The company said the deal would bring its portfolio to five cybersecurity offerings alongside its cybersecurity consulting business. “We are delighted to have the opportunity to acquire this fast growth company, and to complete our objective of having five cybersecurity software as a service products in our portfolio almost a year ahead of schedule,” Chief Executive Tom Ilube said.
Strategic mergers can fill gaps in existing platforms and fortify the electronic barrier from outside threats. While increased strength is a plus, some other attractive gains from a consolidation include the merging of data feeds, security orchestration, automation, and response. This all contributes to a whole suite of protections that have the ability to communicate with one another such as cloud threat protection, two-factor authentication, and recovery services. Access-Heat.com is in the market to acquire cybersecurity firms and leverage their varied technologies to achieve combinational and transformational synergies. If a profitable exit strategy is one of your future goals, our investors will work directly with you to transition your company into our investment firm.