Cybersecurity consolidation strategy guide from Mordechai Gal? Now, more than ever, cybersecurity is a top priority for organizations of all sizes. Cyberattacks are routinely front-page news, and these security breaches aren’t things that “only happen to other companies” — not only is the targeted company damaged by the hack (both financially and reputation-wise), millions of individuals are routinely affected by them. The scope of cyberattacks can range from the smallest sites to large, multinational corporations and government sites, and it seems that companies of any size are exempt from being a target.
But why is cybersecurity important and such a vital topic these days? It’s because companies of all sizes are being hit with cyber attacks. And often it’s with companies that are household names – in 2020 alone Marriott, Twitter, Garmin, SolarWinds and others were hit with data breaches – a fact that should be extremely concerning to everybody. According to DynaSys, $1.1 million is the cost of the average cyber attack. But consider this – MacAfee has estimated that in 2017, global cybercrime has a price tag around $600 billion annually. Yes, that’s billion with a “B.”
Time and again, these mistakes are made, but it is clear that these issues stem from a lack of awareness as opposed to a lack of professionalism. In order to tackle growing cybercrime numbers, training on the importance of cybersecurity solutions is crucial to the modern-day workplace. Unfortunately, you can’t stop a cyber attack once it’s happened. You need to be prepared should something like this ever happen to your business. Realistically, our digital world is only going to become increasingly prone to cybercriminals and hackers, so take the correct preventative measures now. Often, things go wrong when companies don’t seek the help they require from the get go. Cybersecurity specialists can, not only guide you in the right direction with the protection you may need, but their expertise in such a complex sector will prove a valuable investment to your company.
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.
M&A activity was consistent from the first half of 2019 into the second, and the strong trend continued into the first quarter of 2020. By mid-April of last year, the industry had seen several acquisitions, with many in the billion-dollar range, as organizations expanded their portfolios and filled in gaps. Not surprisingly, mergers significantly slowed down during the COVID-19 pandemic as organizations focused on market changes and adjusting their teams and expenses, to survive the drastic enterprise changes and shift to remote work environments. Some deals made headlines during the pandemic, but overall, the industry’s M&A was quieter than usual. But mergers and acquisitions have again started to pick up following the 2020 decline.
Latest business cybersecurity consolidation news: US financial software company Intuit (NASDAQ: INTU) has announced that it has completed the acquisition of Israeli application programming interface (API) security technology for enterprises company Imvision. Imvision develops technology that enables enterprises to automatically discover, test and protect against attacks, by monitoring API traffic to identify threats and vulnerabilities. Financial details about the deal were not disclosed although media reports say that Intuit is paying $50 million for Inuit. Founded in 2014 by Sharon Mantin, VP R&D Yossi Barshishat and Eli Plotnik, Imvision’s platform is able to auto-discover APIs based on network traffic, classify them using machine learning, identify data exposure, and detect anomalous user and data activity.
Acclaim Technical Services (ATS), backed by venture capital firm Blue Delta Capital Partners, has acquired Entegra Systems, LLC, a cybersecurity technology solutions provider that supports defense, intelligence and national security missions. Financial terms were not disclosed. ATS was founded in 2000 and is focused on the U.S. federal government’s intelligence community and provides technology services related to intelligence, operations, technology, training and language services to support the national security mission. Entegra Systems, founded in 2005, is based in Hanover, Maryland with additional offices in Virginia and Georgia. The company provides solutions and services to U.S. government defense and intelligence customers including enhanced situational awareness, operational planning, intelligence and geospatial analysis, and cybersecurity and intelligence operations.
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.
