Symantec, Sophos, NTT Lead Massive Cybersecurity M&A Surge
Rik Turner, principal analyst at Ovum, said the acquisitions are beneficial in that customers want to buy technology from a smaller number of vendors, and therefore manage fewer relationships.
“I also fully expect this trend to continue for the foreseeable future, and possibly even accelerate if the stock market weakens and IPOs become a more difficult alternative,” he said. “The cyber industry has long been one in which a few behemoths at the high end of the market sit and watch the startups emerge in new market segments, then eventually acquire when they deem the time is right — a sort of a cyber version of Mao Zedong’s ‘let a thousand flowers bloom.'”
Mike Suby, Stratecast vice president of research at Frost & Sullivan, said there’s growing recognition that there’s “no silver bullet” in cybersecurity, and that it takes an assortment of technologies, depending on the risk, that need to be managed. Therefore, it’s more advantageous for businesses to get more technologies that work well together from fewer vendors, he said.
Cybersecurity M&A will continue through 2019 and into 2020, but there are “too many variables” to forecast whether the frenzied pace will continue, he said.
Scroll through our slideshow above for a look at the deals that have taken place so far this year.