Zix, Check Point, Radware Get Channel M&A Off to Hot Start in 2019

… a trio of deals in the security space.

ICYMI: Roundup of Recent M&A Activity

• Zix to Buy AppRiver: Email security firm Zix announced a deal to buy cloud-based security company AppRiver for $275 million in cash. The deal is expected to more than double Zix’s annual revenue, to north of $180 million. AppRiver also brings a partner community of around 4,500 MSPs along with it. Private-equity firm True Wind Capital will invest $100 million, via a convertible preferred equity investment, as part of the deal.
• Check Point to Beef Up Cybersecurity Architecture with ForceNock Buy: Following its October 2018 purchase of Dome9, Check Point Software announced it has acquired ForceNock, an Israeli cybersecurity firm. Check Point’s VP of products, Dorit Dor, tells our Edward Gately that the deal will help beef up the company’s machine-learning capabilities, and eventually become part of a later product update that will eventually be available via its VARs.
• Radware to Acquire Shieldsquare: Radware announced an agreement to buy ShieldSquare to boost its cloud-security capabilities. ShieldSquare’s particular specialty is bot-management tools that help businesses distinguish between human and bot traffic on their web and mobile apps. The deal is expected to close this quarter.
• CDW to Acquire Scalar Decisions: CDW announced it will acquire the technology services provider Scalar Decisions, expanding its already considerable footprint in Canada. Scalar currently brings in around CAD $250 million in annual revenue. M&A advisory firm martinwolf noted in its analysis of the transaction that CDW isn’t a “serial acquirer,” preferring quality over quantity. It also pointed out that CDW’s public comments about the technical value of the deal focused on cloud, security, and managed services.
• SilverSun Technologies Acquires Partners in Technology: SilverSun Technologies, a VAR focused on enterprise applications, announced that it has acquired Partners in Technology, a Sage Software reseller in the Chicago area with 2018 revenues of $1 million-plus.
• 360insights Acquires MTC Performance: Finally, all signs point to continued M&A activity in what McBain refers to as the channel software stack. In the channel incentives segment, in particular, venture capital-backed 360insights recently announced the acquisition of MTC Performance. That follows Incentive Solutions fully absorbing Loyaltyworks (a prior acquisition) at the end of 2018, following a recapitalization deal with private equity firm The CapStreet Group. Some 14 percent of channel software firms rolled up in M&A deals last year, McBain said.