M&A in the business cybersecurity industry with Mordechai Gal? The world is now more reliant on technology than ever before. The emergence and growth of technology has had a positive impact on human life, but the convenience has, however, come with the risk of cyber attacks. If you use a tech device for whatever reason, then you’re highly likely to be exposed to a cyber attack. You’ll need to be protected, and that’s where cyber security comes in. Cyber security is the protection of electronic data and information. It’s the defense of electronic systems on devices, like computers, cell phones, servers, and networks, from malicious attacks. Regardless of who you are, it’s important to keep your data safe from unauthorized access.

Today, cybersecurity should be the number one IT priority for businesses no matter how big or small. In an ever-changing digital world, technological threats are constantly advancing and proliferating. Cyber security is notoriously misunderstood and unfortunately, no business is immune to breaches in security. Ransomware is just as unfavourable as it sounds. It’s malware is designed to threaten and access your data, or perpetually block access to it, unless a ransom is paid. This can put your business in a stressful and financially difficult predicament; leaving you out of control and at the instruction of cybercriminals. Breaches of privacy within a company can cause a lot of problems and cybercriminals know this, hence why they often get their asking price. A fundamental, legal requirement that every company must adhere to is the most recent GDPR regulations. Disregarding reputable cybersecurity not only makes you an easy target but could make you non-compliant. Even before a cyber-attack, this places you at risk of losing staff and clients but incurring substantial fines from the ICO. There is a lot at stake, so specialist help is essential to reduce complexity and ensure optimum results.

As society becomes more digitally educated and financially driven, phishing attacks and spam tactics are evolving and increasing with each day. It is the most common way in which harmful malware, like ransomware, can latch on and spread throughout business systems. Phishing takes place in a number of ways, but most commonly gains access to a business through emails. In 2019, it was revealed that 92% of malware was delivered via email. In light of this extremely high statistic, it’s worth noting that legitimate companies will never request sensitive data via email and any URLs sent will match their actual site, as opposed to the slightly different URLs spammers use.

Mergers and acquisitions require a mix of strategic and tactical work – cybersecurity is usually an item on the tactical list. Many organizations are drawing up plans for mergers and acquisitions right now, as leaders look for growth after the pandemic slowdown, and as new business models emerge. However, weakened cybersecurity hygiene throughout the last year means that these M&A transactions elevate the risk of cybersecurity incidents. “M&A can be a breeding ground for cyberattacks and data breaches,” said Mordechai Gal, operations director at AccessHeat Inc. “Stringent due diligence that includes a focus on cybersecurity will help reduce regrets later in the deal lifecycle.” Today’s M&A plans need to include cybersecurity at several strategic and tactical points, to address growing scrutiny from regulators and other evolving cybersecurity risks.

While mergers and acquisitions generally lagged during the COVID-19 pandemic, they didn’t stop completely. Several notable transactions have taken place since early 2020. In March 2020, Sophos announced the completion of its take-private acquisition by Thoma Bravo. Later that summer, Thoma Bravo finalized its acquisition of Exostar, and earlier this year it agreed to acquire Proofpoint for a whopping $12.3 billion. It wasn’t the only private equity firm having a busy year: Symphony Technology Group bought RSA, McAfee’s enterprise business and, more recently, FireEye’s product business. Early last year, Insight Partners bought Armis for a valuation of $1.1 billion.

Recent business cybersecurity mergers and acquisitions news: Wipro yesterday said it will acquire Austin, Texas-headquartered Edgile for USD $230 million, a move that will strengthen the IT major’s play in the cybersecurity services space. Edgile’s experienced cybersecurity and risk management professionals will allow Wipro to further enhance its cybersecurity and risk consulting capabilities for the benefit of its customers, a regulatory filing said. In addition, the company’s ‘strategy-first’ approach and ‘Quick Start’ solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services, it added. The transaction is expected to be completed before Mar. 31, 2022, subject to regulatory approvals and customary closing conditions, the filing said.

Crossword Cybersecurity PLC said Tuesday it has agreed to acquire an undisclosed cyber-threat company for 1.5 million pounds ($2 million). The U.K. cybersecurity technology commercialization company said that it will pay for the transaction in a mixture of cash and shares, and that some of the payment will be deferred. The company said the deal would bring its portfolio to five cybersecurity offerings alongside its cybersecurity consulting business. “We are delighted to have the opportunity to acquire this fast growth company, and to complete our objective of having five cybersecurity software as a service products in our portfolio almost a year ahead of schedule,” Chief Executive Tom Ilube said.

Cybersecurity is at the forefront of any tech company and has become a top priority for just about any industry where data is stored and shared. As large companies seek to create more sophisticated platforms to protect their data assets, the increase in recent cybersecurity mergers and acquisitions has drastically grown over the past ten years. Companies are now recognizing this technology to be just as essential as any other component of their business. The lack of an all-encompassing security blanket in today’s platforms is the primary driver in this consolidation trend. AccessHeat Inc. is in the market to acquire cybersecurity firms and leverage their varied technologies to achieve combinational and transformational synergies. If a profitable exit strategy is one of your future goals, our investors will work directly with you to transition your company into our investment firm.