Category: Merger & Acquisition

Darktrace has officially announced its acquisition of Cado Security for £131 million, marking the first major deal for the cybersecurity giant since its own acquisition by Thoma Bravo in October 2024. This strategic move signals Darktrace’s intent to solidify its position in the cybersecurity market through innovative collaborations and expanded capabilities.

Cado Security, a UK-based cybersecurity firm, expressed enthusiasm about the development. The company’s Research and Development teams, currently based in Bristol and London, are set to collaborate closely with Darktrace’s teams in The Hague, Cambridge, and other locations starting from March or May this year. This integration is expected to foster a seamless exchange of expertise and drive advancements in cybersecurity solutions.

Industry experts have praised the deal as a potential “win-win” scenario for both organizations. The partnership will bring together Cado Security’s expertise in forensic investigation technology and Darktrace’s ActiveAI security platform. This fusion aims to enhance secure data collection and management across multi-cloud environments, addressing the complex challenges of modern cybersecurity.

Furthermore, Darktrace plans to leverage this acquisition to strengthen its product portfolio for major cloud platforms, including AWS and Microsoft Azure. By addressing vulnerabilities in SaaS and cloud infrastructures, the company seeks to proactively thwart cybercriminal activities and provide enhanced protection for businesses operating in the cloud.

This acquisition highlights Darktrace’s commitment to innovation and its strategic vision to remain at the forefront of the cybersecurity industry. As the two companies integrate their technologies and resources, the collaboration promises to deliver significant benefits for clients navigating the evolving digital threat landscape.

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In a significant development within the cybersecurity sector, two major players, Sophos and Secureworks, are poised to enter into a pivotal agreement. Sophos, a leading cybersecurity firm, plans to acquire Secureworks for an impressive transaction value of $859 million. This acquisition is being facilitated through investment funding arranged by Thoma Bravo, the parent company of Sophos. Under the terms of the deal, each shareholder of Secureworks will receive $8.39 per share, all in cash. Notably, this includes a substantial number of shares held by customers of Dell Technologies, which has been a significant stakeholder in Secureworks.

On October 20, 2024, additional details about the acquisition were disclosed through a Form 8-K filed by Secureworks with the U.S. Securities and Exchange Commission. The completion of the deal is anticipated early next year, marking a significant step in the ongoing consolidation within the cybersecurity industry.

The strategic integration of Secureworks’ technology into Sophos’ offerings is expected to enhance its portfolio of security products, particularly aimed at serving enterprise customers. This merger not only aims to strengthen Sophos’ technological capabilities but also to expand its market presence on a global scale, positioning the company to better compete in an increasingly competitive cybersecurity landscape.

Interestingly, this acquisition has garnered considerable attention on social media platforms, particularly Reddit, where speculation arose regarding the validity of the deal. Some users suggested that the news may have been a form of disinformation orchestrated by a competing security firm from the Middle East, which has been facing stiff competition from American firms. However, the narrative was clarified when a British firm confirmed the acquisition news in the last week of September 2024, revealing that Dell, the majority stakeholder of Secureworks, was indeed planning to divest a substantial portion of its shares.

Looking back at the history of Secureworks, it’s important to note that Dell Technologies initially acquired the company in 2011 and subsequently took it public in 2016. Over the years, Secureworks has made several attempts to sell a major stake, notably in 2019, but these efforts were thwarted by various challenges, including the global business downturn caused by the COVID-19 pandemic.

For those unfamiliar with Secureworks’ recent achievements, the company has been at the forefront of cybersecurity intelligence. Notably, it uncovered a sophisticated espionage operation in which a North Korean hacking group trained an individual to infiltrate a multinational corporation based in the West. This operation aimed to extract sensitive information from the targeted business, highlighting the critical role that Secureworks plays in identifying and mitigating cybersecurity threats on a global scale.

In conclusion, the impending acquisition of Secureworks by Sophos represents a notable shift in the cybersecurity landscape, with the potential to reshape market dynamics and enhance technological capabilities in the face of evolving threats.

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Mastercard, a leading financial institution renowned for its payment solutions, has significantly strengthened its position in the field of cybersecurity with its recent acquisition of Recorded Future, a prominent cyber threat intelligence firm. The deal, valued at $2.58 billion, is set to be finalized by the first quarter of 2025, following the conclusion of legal and contractual agreements with the current owner, Insight Partners.

Recorded Future, established in 2009, took some time to carve out its niche in the cybersecurity market. However, after earning recognition and accolades within its industry, it was acquired by Insight Partners, a prominent venture capital firm, in 2019 for $768 million. This acquisition marked a pivotal moment in Recorded Future’s growth trajectory, enhancing its capabilities and market presence.

Mastercard’s strategic interest in Recorded Future lies in leveraging its advanced technology to bolster cybersecurity measures and mitigate risks for its customers. The financial sector, particularly the payments industry, is a frequent target for cyberattacks, making robust threat detection and response crucial. Recorded Future’s expertise in cyber threat intelligence, enriched with cutting-edge generative AI technology, aligns perfectly with Mastercard’s objective to address and manage emerging threats in this high-risk domain.

For the past few years, Recorded Future has been a valuable technology partner to Mastercard, providing sophisticated threat detection solutions that utilize generative AI to process and analyze vast amounts of data. This partnership has already contributed to Mastercard’s ability to proactively identify vulnerabilities and respond with timely insights, helping to safeguard its operations and client information.

Notably, Microsoft’s OpenAI GPT technology, known for its proactive threat identification and real-time vulnerability insights, has played a significant role in enhancing Recorded Future’s capabilities. This collaboration has underscored the importance of integrating advanced AI tools in cybersecurity efforts.

In response to the acquisition, Christopher Ahlberg, the CEO of Recorded Future, took to Twitter (now X) to provide clarity on the future of the company. He confirmed that while Recorded Future will operate as an independent intelligence platform, it will function as a subsidiary of Mastercard in the coming months. This transition is expected to enhance Mastercard’s cybersecurity infrastructure while maintaining Recorded Future’s established operational autonomy.

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Salesforce, the prominent American tech company known for its CRM software, has announced its plan to acquire cloud-based data security firm Own Company for $1.9 billion in cash.

Back in 2021, Own Company had valued itself at $3.5 billion, and Salesforce had purchased a 10% stake in the firm, which specializes in data management and protection. Now, Salesforce is set to acquire the entire company by the end of November 2025 to enhance its data security and privacy offerings.

Having partnered with Salesforce for over a decade, Own Company is prepared to transition its 7,000 customers to Salesforce’s customer service management platform. As the world rapidly embraces digital transformation, data security has become increasingly crucial for businesses. Own Company has been a leader in providing robust data security solutions, and Salesforce plans to integrate this technology into its suite of AI-driven data security and compliance tools, including Salesforce Backup, Salesforce Shield, and Data Masking.

Additionally, Salesforce has announced its intention to acquire Tenyx, an AI-powered voice-based agent, for an undisclosed amount. This acquisition aims to enhance its protection and compliance solutions with smarter response capabilities.

In related news, Parker Harris, the CTO of Slack and co-founder of Salesforce, has recently sold $800,000 worth of company stock, according to the latest SEC filings.

Salesforce has also introduced an internal talent marketplace named ‘Career Connect,’ designed to assist employees in gaining job experience and training for internal opportunities. This AI-powered platform will not only help in matching employees with relevant job openings but also support their skill development and training.

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Check Point Software Technologies has officially announced its intention to acquire Cyberint, a pioneer in External Risk Management solutions; although the financial details of the transaction have not been disclosed. This strategic acquisition aims to significantly enhance Check Point’s Security Operations Center (SOC) capabilities and substantially expand its threat intelligence portfolio.

In 2013, Cyberint was honored with the prestigious ‘Company of the Year’ award by Frost & Sullivan, establishing itself as a leader in the realms of threat intelligence, digital risk protection, and attack surface management. The company serves a global clientele across 170 countries, including 69 Fortune 500 companies, reflecting its robust industry presence and expertise.

In today’s digital landscape, phishing attacks targeting employee login credentials have become a prevalent and ongoing threat. Cyberint excels in addressing this issue by providing real-time intelligence and proactive defense strategies. Leveraging advanced AI technologies, Cyberint aims to enhance information security while minimizing false positives, thus offering a comprehensive solution to mitigate these threats.

In related developments, Check Point Software Technologies is forecasting significant growth in the cybersecurity market by 2031. To capitalize on this opportunity, the company is planning to invest an additional $2 billion to facilitate further mergers and acquisitions. This strategic investment is intended to reduce competition and expand Check Point’s customer base by acquiring assets from other firms in the sector.

Moreover, Check Point highlights a critical trend in cybersecurity: 90% of attacks on corporate networks originate from phishing emails. Alarmingly, 72% of these phishing attacks lead to the dissemination of malware or ransomware, in addition to credential theft. With the rise of Generative AI, the sophistication of such attacks has evolved, with cybercriminals increasingly targeting the same compromised networks multiple times.

This acquisition and investment strategy underscores Check Point’s commitment to bolstering its cybersecurity infrastructure and expanding its influence in the industry, positioning itself to address emerging threats and sustain its competitive edge in the evolving digital threat landscape.

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Fortinet, a major player in the cybersecurity industry, has acquired data security startup Next DLP for an undisclosed sum. The acquisition, set to be finalized legally by next weekend, aims to strengthen Fortinet’s Secure Access Service Edge (SASE) platform.

Next DLP, a pioneer in the data loss prevention (DLP) sector, has drawn significant interest from Fortinet’s senior executives. The company specializes in preventing data exfiltration and detecting internal threats that could compromise business operations over time.

In addition to its core DLP services, Next DLP offers a technology called Reveal Platform, which integrates with generative AI tools like ChatGPT, Hugging Face, Claude, Bard, and Gemini. This technology will now be incorporated into Fortinet’s Unified SASE platform, which recently also integrated another cybersecurity solution, Lacework.

Market analysts see this acquisition as a strategic move by Fortinet to consolidate its position in the industry. By acquiring rapidly growing smaller companies, Fortinet not only expands its customer base but also enhances its global reach and product offerings. This trend was similarly observed with the acquisition of Lacework.

As Fortinet’s revenue has significantly exceeded its annual forecast—reaching $1.43 billion with an 11% growth this year—more acquisitions are anticipated. Despite a slight decline in product revenue noted in SEC filings, demand for Fortinet’s secure networking tools, unified secure access service edge, and AI-driven security operations remains strong. The recent appointment of Joe Sarno as Executive Vice President of International Sales is expected to bolster this momentum further.

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Alphabet Inc., the parent company of Google, is set to acquire the cybersecurity startup Wiz for a substantial $23 billion in an all-cash deal expected to close by September this year. This move comes amidst heightened scrutiny by US regulators, particularly following President Joe Biden’s directive to closely examine foreign acquisition and merger deals for potential national security risks. The acquisition of Wiz, based in Israel, underscores Alphabet’s strategic intent to bolster its capabilities in digital security, particularly in safeguarding Kubernetes and enhancing vulnerability management.

The decision to acquire Wiz follows Alphabet’s recent announcement of acquiring HubSpot, a leading marketing software company. It’s a common strategy for large firms to acquire smaller ones to reduce competition and expand market dominance.

Google plans to leverage Wiz’s technology to enhance its security offerings, building upon previous acquisitions like Mandiant in 2022 for approximately $6 billion. For high-risk accounts, Google is rolling out enhanced security measures such as passkey protection, complementing physical security keys like YubiKey. These measures are aimed at safeguarding sensitive users such as journalists, politicians, and human rights workers from state-sponsored cyber threats.

Users interested in these advanced security features can enroll in Google’s Advanced Protection Program (APP), which provides robust defense against phishing, malware, and other data breaches.

In addition to cybersecurity advancements, Alphabet is preparing to unveil details about its facial recognition technology designed for securing corporate campuses. Currently being tested by its Security and Resilience Service team in Kirkland, Washington, this technology aims to protect users, products, and locations from unauthorized access.

To address privacy concerns, Alphabet emphasizes that its facial recognition data is used immediately and is never stored in any form on its servers, a clarification intended to reassure privacy advocates.

Overall, Alphabet’s acquisition of Wiz and its ongoing advancements in digital security and privacy technologies reflect its commitment to maintaining leadership in the competitive landscape of cybersecurity and tech innovation.

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Tenable Holdings has officially announced its acquisition of Eureka Security Inc, although the financial details remain undisclosed. Eureka Security Inc, known for its pioneering work in Data Security Posture Management for cloud environments, will play a crucial role in assisting Tenable’s customers in timely identification of cloud data risks and preemptively addressing data leaks and compromises before they escalate into incidents.

In the forthcoming weeks, the technology of Eureka Security’s Data Security Posture Management will be seamlessly integrated into Tenable Cloud Security. This integration aims to enhance Tenable’s CNAPP solution, ensuring enhanced protection for cloud workloads while streamlining the process of risk identification through automation.

In related news, Fortinet has made headlines with its acquisition of Lacework, a notable player in the cloud security sector. Lacework, having recently transitioned from startup status following substantial funding, had been on the verge of being acquired by Wiz for $200 million. However, Fortinet, a prominent Silicon Valley security vendor, swooped in, leveraging the capabilities of Lacework’s AI-powered cloud security platform to elevate its security fabric to new heights. This strategic move empowers Fortinet to offer customers seamless security solutions across both on-premise and cloud environments.

Industry observers note a trend of consolidation within the cybersecurity sector, with smaller firms and startups increasingly being absorbed by larger entities. Such acquisitions serve dual purposes: they enhance the acquiring companies’ trade capabilities while also enabling them to integrate cutting-edge technologies into their portfolios. This phenomenon, often likened to cannibalism, sees larger corporations absorbing smaller competitors, thereby gaining a competitive edge and expanding their market reach by inheriting the customer bases of the acquired entities.

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It seems like CyberArk’s acquisition of Venafi’s cybersecurity business is making waves in the industry! The move indicates a strategic expansion of CyberArk’s security capabilities to tackle evolving threats in the cloud and the post-quantum era, as mentioned by CEO Matt Cohen. The financial details of the deal, with $1 billion in cash and $540 million in stock, reflect a significant investment by CyberArk.

Market analysts view this consolidation positively, projecting an increase in CyberArk’s total addressable value from $40 billion to $60 billion. Consolidation often provides companies with enhanced technical prowess and financial strength, fostering healthy market growth and benefiting emerging players with increased funding opportunities.

Moreover, the timing of the deal, breaking the trend of M&A slowdown during national elections, highlights the resilience of the business landscape. This suggests that economic activities continue despite political transitions, signaling stability and confidence in the market.

The comparison with recent acquisitions by other firms like Akamai and Wiz sheds light on the varying dynamics of acquisition costs and asset valuation in the cybersecurity sector. While Akamai’s acquisition of Noname Security and Wiz’s deal with Lacework saw a decrease in acquisition costs relative to the asset’s value, CyberArk’s acquisition of Venafi demonstrates a different trend with a higher acquisition cost. This variance could be attributed to factors such as the strategic importance of the acquisition, the competitive landscape, and the unique capabilities brought by the acquired company.

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KnowBe4, a leading business platform renowned for its AI-driven security awareness training, has announced its acquisition of Egress, an email security firm, for an undisclosed sum. The deal is expected to be finalized by September this year.

The prevalence of data breaches in businesses worldwide underscores the critical need for enhanced email security measures. Email has emerged as a primary vector for cyber-attacks, with sophisticated threats infiltrating networks to steal sensitive information.

The threat landscape is further compounded by the evolution of advanced targeted attacks like phishing, spear phishing, whaling, vishing, and wire transfer frauds, often propagated through malicious URLs. These tactics lure recipients into clicking on links that harbor malicious payloads.

This reality was underscored in a recent study, the Verizon Data Breach Investigation Report. To address these risks effectively, KnowBe4 aims to provide a comprehensive threat intelligence platform. Leveraging AI technology acquired from Egress, this platform will dynamically mitigate email-related risks.

So, how can individuals and organizations protect themselves from email-related cyber threats?

Exercise caution when clicking on links from unknown senders.

Scrutinize attachments for spelling errors, a common indicator of phishing attempts.

Utilize strong passwords comprising alphanumeric characters and special characters, with a length of at least 12-15 characters.

Deploy anti-malware and anti-virus solutions to fortify network defenses.

Ensure computers are regularly updated with the latest security patches and consider investing in email threat monitoring solutions like Egress for proactive defense.

By adopting these proactive measures, businesses can bolster their resilience against the growing threat of email-based cyber-attacks.

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