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CyberScope – Q3 2018 Market Review

By Jay Nathwani 11 Oct 2018

Welcome to the Q3 2018 edition of the CyberScope – Results International’s regular market update for the global cybersecurity space.


Highlights in the quarter include:

  • Identity, access and governance have been hot sub-sectors within cybersecurity this quarter, driving record levels of activity particularly from private equity and private equity-backed businesses. Results International acted as exclusive financial advisor to Avecto (endpoint privilege management) on its sale to Bomgar (a Francisco Partners-backed company). Bomgar further strengthened its market-leading position in the Privileged Access Management space through its acquisition of BeyondTrust (for a reported $625m), further establishing itself as a global, scaled rival to Cyber Ark.
    • Other notable transactions in the identity space include Thoma Bravo’s acquisition of Centrify (estimated $500m), Exostar’s acquisition of UK-based Pirean, Okta’s acquisition of ScaleFT and EY’s acquisition of Xynapse.
    • Okta (federated Identity-as-a-Service and Single Sign On solutions) which IPO’d last year at 7x Revenue, is trading at more than 20x revenue, following record customer growth.

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  • Cybersecurity valuations are their highest since 2016, trading at a median of 5.8x Revenue (next-gen providers are trading at a median of 8x), and Results International’s Global Security Index has grown 30% over the past year. Furthermore, Bloomberg reported Zscaler as the best-performing US technology IPO of the year following revenue growth exceeding bullish analysts’ expectations. Zscaler, like Okta, is also now trading at more than 20x Revenue (having listed at less than half that).
  • Growing geopolitical tensions surrounding software and hardware cyber attacks (allegedly from Russia, North Korea and China) and the severity of nation-state level attacks has attracted significant private investment; Cambridge-headquartered Darktrace being a notable beneficiary, raising another $50m (Series E) led by Vitruvian Partners, valuing the five-year old business at $1.65bn, doubling in value from its Series D round last year.

Cybersecurity, from growth equity raises to strategic exits, continues to demand premium interest, making now an excellent time to be contemplating a fundraising, exit or growth through acquisition in the cybersecurity space – if you are, please do get in touch.

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Jay Nathwani


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