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CyberScope – Q3 2019 Market Review

By Jay Nathwani 22 Oct 2019

Welcome to the Q3 2019 edition of the CyberScope – Results International’s market update for the global cybersecurity sector.

Highlights in the quarter:

  • Two blockbuster acquisitions headline deal making this quarter; Symantec’s enterprise security assets acquired by Broadcom for $10.7bn and VMware’s buyout of recently listed Carbon Black for $2.1bn.
    • Acquisition remains an active channel to build full-service cybersecurity offerings;  Outpost24 has demonstrated this through its acquisition of Pwnie Express, a provider of threat detection for bluetooth, wireless and IoT devices. Results International, acted as the exclusive advisor to Outpost24 on the acquisition, which enables the company to assess and monitor cyber exposure more completely across infrastructure and web applications.
    • Private equity money also continues to seek out leading opportunities in the space; Intragen, a leading pan-European Identity and Access Governance (I&AG) consultancy received investment from FPE Capital, with Results International acting as exclusive financial advisor to Intragen.
  • Two further public listings: Identity and access management (IAM) provider, Ping Identity (marking Vista Equity Partners’ first IPO exit) valued at $1.1bn+ on its long-anticipated IPO, increasing its price 34% on Day 1 and DDoS network attack protection provider, Cloudflare valued at $4.1bn+, also increasing 20% on Day 1.
  • Two new cybersecurity firms gained unicorn status ($1bn+ valuations); disaster recovery solutions provider, Acronis (raised $147m from Goldman Sachs) and AI-powered web and mobile application defence platform, Shape Security (raised $51m Series F led by C5 Capital).
    • Gartner is forecasting worldwide spending in security to outpace general IT spending, driving significant investor appetite in the space. Crowdstrike, for example, who listed last quarter, following significant private investment rounds prior, is now trading at nearly twice its price at IPO.

Cybersecurity, from growth equity raises to strategic exits, continues to generate great 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.

Jay Nathwani

Associate

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