The CyberScope – Q1 2022

Chris Lewis, Albert Kouzminski, Ramanan Thavendran

Despite a backdrop of some macroeconomic uncertainty, the first quarter of 2022 started strong with 52 M&A transactions, representing a 41% increase from Q1 last year, as the security sector again proves its strong resilience.

The CyberScope

Google’s $5.4Bn acquisition of cloud and managed cybersecurity provider, Mandiant, very clearly demonstrated the opening of a new front in the battle for cloud supremacy from the hyperscalers.

As public market valuations have cooled slightly, we are seeing increasing focus from larger PE funds in public to private transactions. The current fragmented state of the cybersecurity market continues to present an opportunity to consolidate as acquirers, both strategic and financial, are willing to pay a sizeable premium for businesses with high growth.