AWS Partner Gets Another Cash Infusion to Pursue ‘Mission’
… space crowded with deals and dealmakers; security might be even hotter. Let’s look at some other recent news of note in the channel.
Cloud isn’t the only space with a claim to the M&A throne; the crown seems to fit security well, too. There were 20 different M&A deals in the security sector worth a total of $2.2 billion in May, according to advisory firm Momentum Cyber. The biggest deals were:
- Insight Venture Partners’ acquisition of Recorded Future for $780 million.
- Orange’s purchase of SecureLink for $577 million.
- Palo Alto Networks’ deal for Twistlock for $410 milllion.
The median deal value was $185 million. Managed security service providers (MSSPs) were the largest segment of the overall sector, with five different deals.
Oh, and there was nearly another $1 billion in funding transactions in the cybersecurity industry, with $946 million raised across 45 deals, according to Momentum.
Introducing Iconic IT
There’s a rule of thumb that suggests many MSPs have a tough time scaling beyond 20 employees or so without some help. (Anderson, the Mission CEO, mentioned that in an interview with us last year, for example.) One form of help: joining forces with other MSPs in your space.
That’s part of the story behind Iconic IT, which will become official on July 1. It’s the merger of four MSPs focused on the SMB market: Capstone IT (based in Rochester, New York), Choose Networks (Wichita, Kansas), Live Consulting (Denver), and Networking Results (Dallas). All four companies had been part of the same ConnectWise Evolve peer group. The combined companies will be led by Capstone co-CEO Mike Fowler as CEO of the new entity, with leadership from each of the original four companies taking on various executive roles. According to the company, the chief goal of the merger is to create an MSP with a national footprint that maintains its local, small company feel.
- Crowdstrike IPO Pops: Cloud security firm Crowdstrike joined the ranks of publicly traded firms this week, and the market welcomed it with open arms. Its June 12 IPO on the Nasdaq raised $610 million, valuing the company at $7 billion. (Apparently, when you can pair cloud and security together, you get even more investor heat.)
- Salesforce Buys Tableau: Pairing “cloud” and “data” is another good way to appeal to investors, evident in the “take a moment and breathe” price tag – $15.7 billion – Salesforce.com will pay to buy Tableau. Channel Futures’ Jeffrey Schwartz has the recap for you.
- Palo Alto Networks Acquires Serverless Security Firm: Security has the final word, and that word is serverless. Palo Alto Networks has been busy on the dealmaking front: In addition to its Twistlock buy, the firm recently said it will buy the Israeli firm PureSec, which specializes in securing severless architecture.
- The IT Market in General Is Hot: Advisory firm martinwolf’s newly released June IT Index reflects a general happy face for folks with stakes in IT services, cloud and SaaS providers, and overlapping categories. For this period, the martinwolf US SaaS Index and US Software Index reflected growth over 20%. The IT Supply Chain Index and IT Services and BPO Index posted growth of more than 21.7%,” the company said in its recently released report. “In line with these trends, martinwolf anticipates more IT deals as demand for SaaS, cloud-based enterprise and marketing software grows.”