Visory (formerly Adopt Technologies)’s Post

Only 67 cybersecurity companies have been acquired for over $1 billion. Ever. That's ~1% of all cybersecurity companies. Big deals are really, really rare in our industry. Why? A few reasons: – Public investors (usually) don't like large cybersecurity acquisitions. They punish cybersecurity companies who do large deals. Smaller (<$500m) tuck-in acquisitions make investors happier. – Large technology companies rarely view cybersecurity as strategic. Most cybersecurity companies don't have the same strategic value as, say, Salesforce buying Slack for $27.7 billion. – Financing billion-dollar deals is hard. Most companies don't have the cash or equity value to make large deals happen without severely limiting their strategic options, and debt is expensive. ...but there are always exceptions! Okta bought Auth0 for $6.5 billion because customer identity was a strategic market. Alphabet bought Mandiant for $5.4 billion because security was strategic for the growth of Google Cloud. Massive deals can happen, but the odds of a company experiencing one are about like finding a four-leaf clover or being dealt a royal flush.

🔒 Exciting news in the cybersecurity world! 🚀 LogRhythm, owned by Thoma Bravo, is set to merge with rival Exabeam in a move that's shaking up the industry. 💥 The price tag might be hefty, but the impact could be even bigger. Get ready for a game-changer! #ainews #automatorsolutions 🔗 As these tech titans join forces, we're bound to see some serious innovation and transformation in the cybersecurity space. 💡 Brace yourselves for cutting-edge solutions and enhanced security measures – this merger is more than just a business move, it's a cybersecurity revolution in the making! 🌐 🔍 Remember when giants like Microsoft and LinkedIn came together? 💭 History repeats itself, and this merger might just be the next big success story! By combining strengths, LogRhythm and Exabeam are gearing up to lead the charge in safeguarding our digital world. 🛡️ 🔮 Predictions? Oh, we've got a few! With their powers combined, expect unparalleled threat detection, seamless integrations, and a new era of cybersecurity excellence. 🚨 Stay tuned as this dynamic duo sets new benchmarks and charts the course for the future of digital defense. 🔐 Join the conversation! 🗣️ What are your thoughts on this mega-merger? How do you think it will impact the cybersecurity landscape? Share your insights and predictions below! Let's decode this cybersecurity puzzle together. 🔍💬 #ainews #automatorsolutions #CyberSecurityAINews ----- Original Publish Date: 2024-05-15 11:06

The Alphabet-Wiz deal would have the highest revenue multiple in the history of large cybersecurity M&A... ...but it's not entirely in a class of its own. Wiz would fall somewhere between a 45-65x multiple on current revenue (current revenue is estimated, most recent disclosure was $350M). There's one other cybersecurity transaction with a pretty similar profile: Okta's acquisition of Auth0 in 2021. The Okta-Auth0 deal had a 42.7x revenue multiple, which is easily the highest among large ($2.5B+) cybersecurity acquisitions that have actually closed. Auth0 was a clear leader in the Customer Identity (CIAM) market, which Okta estimates to have a $30B TAM. Leading the CIAM market was one of their highest strategic priorities — so they paid a 42.7x multiple to buy the emerging market leader. Sound familiar? Leading the cloud security market is one of Alphabet's highest strategic priorities — so they're willing to pay a 45x+ multiple to buy the emerging market leader. --- Situations like this are similar to CrowdStrike or Okta being taken off the board right before they went public. That didn't happen, obviously — but Wiz is the closest example we have in the industry today. Alphabet is betting they are acquiring a future CrowdStrike or Okta, and they know it takes a heavy premium to do it.

The Q1 2024 Technology Services M&A Market Report, written by Matt Tortora, is now available! Despite 2023's economic challenges, the drive for digital transformation fueled acquisitions in cloud computing, cybersecurity, and AI. Private equity's influence grew, intensifying competition and valuations. Looking ahead, a resurgence in M&A is forecasted, emphasizing scalability and innovation. Gain strategic insights into the 2023 landscape and 2024 outlook. Download our comprehensive report now. https://lnkd.in/ekwX68Dn #mergersandacquisitions #technologyservices #digitaltransformation #cloudcomputing #cybersecurity #artificialintelligence

While the growing tech acquisitions and consolidations have advantages such as improved cybersecurity, customers of software companies also face a number of challenges, including rising prices for capabilities they might not want or need. Interestingly, this article in The Wall Street Journal highlights that even though CIOs need more flexibility, vendors continue to focus on bundled offerings. That shows a clash between customers’ needs and vendors’ strategy that can lead to customers asking themselves, “Is this the right thing for us?” For decades, collaboration and shared success have been the building blocks of our #opensource community. At SUSE, we are focused on preserving choice and ensuring that customers are not subjected to vendor lock-in and have genuine choice today and tomorrow.

“Cybersecurity companies who want to go public in 2024 and beyond need to be bigger, faster, and stronger than the companies that came before them. The 13 pure cybersecurity companies on public markets today are a mixed bag.⁷ On average, we're comfortably above IPO-level expectations for total revenue, margins, and operating expenses. We're lagging on growth and net dollar retention. Valuation metrics reflect both — our 8.1x multiple is above the SaaS IPO median and below the 2023 IPO median. Getting to today's standard of software industry performance means being bigger, faster, and stronger. It's about balance and temperance, not overdoing one of the three. Higher standards are painful at first, but they're better in the long-term.” - Strategy of Security #growth #cybermarket #excellence #qualifiedsalesleadership #highperformers #operationalexcellence #tech2024

In a surprising turn of events, cybersecurity startup Wiz has decided to walk away from a $23 billion acquisition offer from Google, opting instead to pursue an initial public offering (IPO) 📈. The deal would have been Google’s largest acquisition to date. Wiz is an organization that offers cloud-cybersecurity solutions to enterprise-level organizations 🔐. Wiz has experienced remarkable growth, hitting $100 million ARR within 18 months and reaching $350 million last year. This rapid growth has positioned Wiz as a formidable player in cybersecurity. The collapse of the Google-Wiz deal highlights the complexities and challenges of large-scale acquisitions in the tech industry. For Google, the failed acquisition represents a missed opportunity to strengthen its cloud security portfolio. For Wiz, the decision to pursue an IPO instead of being acquired underscores the company’s confidence in its growth potential and market position 💼. Read the entire article here: https://lnkd.in/g-EaZm_h

You're thinking about doing a merger or an acquisition. Concerned about financials, valuations, culture fit, and risks? 😰 Sadly, many businesses overlook the importance of including tech and IT considerations in their informed M&A decisions. Our very own Steve Dawson shares his thoughts on how a great tech strategy can lead to your M&A success. So why should you focus on IT in an M&A? ✅ To create better strategic value ✅ To save costs ✅ To mitigate risks ✅ To improve processes ✅ To enhance cyber security To find out what are the next steps to take, read his article now👁️🗨️: https://loom.ly/1IHfmio #ITMergers #InformedDecisionMaking #BusinessStrategy #MandA #DigitalDueDiligence #CorporateIntegration #ITandBusiness #MergersAndAcquisitions

#CIOs, #CTOs, #CISOs, these questions may seem obvious but when you are down in the weeds of heading off cyber attacks, validating DR, maintaining regulatory requirements, whilst hiring the right talent, it can be easy to forget to take a breath. Come up for air, survey the site and ask yourselves these questions about your strategy.... and are you on track? A great reminder CIO Online. https://lnkd.in/gaESCE2w

Navigate the future with Fractional CSOs! 🚀🔐 Explore how Fractional Chief Security Officers are playing an expanding role in enhancing cybersecurity strategies. Uncover the benefits of this evolving approach to safeguarding digital landscapes. #FractionalCSO #Cybersecurity #DigitalStrategy https://lnkd.in/e3mBvcVj