October 17, 2021

Transpero

Tiny articles, big solutions.

Key Merger and Acquisition Trends In The Cybersecurity Industry

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The corporate has shifted a considerable part of its focus to its tech strategies. Lately, we have seen many tech startups as well, which adds more credibility to the tech market. At the same time, cybersecurity has also seen a spike in the market curve. Companies have started dedicating a considerable part of their R&D (Research and development) budget to cybersecurity. On the other hand, mergers and acquisitions have seen a rise, and the numbers seem to be growing by leaps and bounds. Consequently, top mergers and acquisitions law firms have been coming up with new and improved strategies for potential clients.

The market has seen evolved trends and new protocols. If we take an overview, cybersecurity was a $120 billion industry in 2017, and the numbers are too big to ignore.

If you are Mergers and acquisitions lawyer, looking forward to establishing a career in the field, you must understand these trends and work accordingly.

In this article, we are going to reflect on some of the pivotal latest trends. Let’s begin:

●     The graph so far

We came across the realms of the tech industry in the early 2010s. Initially, the internet was a harmless, less efficient, and sparsely explored platform. Still, over time, we grew in awareness, and now a significant part of our work and personal life thrives there. But, as we know, everything has some trouble up its sleeve, and the case is not different when it comes to the internet. With the rising utility, we saw a rise in cybercrime. It may sound like trouble, but the security breach gave birth to an enormous cybersecurity industry. Business moguls have been spinning ground-breaking turnovers in the M&A arena of the industry. The sector saw 237 M&A deals in 2016, which fetched a record-breaking revenue of $104.5billion. Now, isn’t that outstanding. So far, no year could beat the revenue record of 2016, but 2018 saw a hike in the number of deals, closing the fiscal session at 283.

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●     PE firms rule the picture.

As opposed to the other areas of the tech industry, cybersecurity is a considerably safe market to invest in. We can lay this out over two grounds-

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Firstly, the trends so far point towards a very stable and healthy business curve in the future. So far, we have not encountered any slump in the graph. Every year, the market closes on a higher number of deals and an appreciably grown revenue. 7.2 percent of all global IT deals are secured by the cybersecurity branch, which is the third-highest tally record.

Secondly, it is certainly a sigh of relief to be investing in an industry that is highly targeted by Private Equity firms, since they are certainly more observant about the market and don’t dive in troubled waters. As recorded by the top mergers and acquisitions law firms, 117 of 283 deals were closed by PE firms in 2018.

●     The issues which drive the industry

Now, since we are talking about the market trends of such a beautifully thriving industry, it is pivotal that we develop a deeper understanding of the kind of concerns and problem areas that rule the industry. Let’s take a look:

  • Cloud-based services
    • Regulatory compliance
    • Increased cases of data breaches
    • Enhanced focus on consolidation by strategists and private equity
    • BYOD (Bring Your Own Device)

Indeed, the technology and internet cultures have brought along many issues, but at the same time, it gave birth to the flourishing cybersecurity industry. So, we can’t complain, can we?

●     The future has a lot in the store!!

If you think that the merits of this new industry finish here, you need to reconsider your conclusion. Going by the trends so far, market analysts believe that the industry has a lot of potential in the future too. Management Security Service Provider (MSSP) market is expected to spike up at an annual Compound annual growth rate (CAGR) of 14.5%. We hope to grab an impressive figure of $58 billion by 2024. Citing a recent market report, “Managed security services market size is expected to garner $40.97 billion by 2022, registering a CAGR of 16.6% during the forecast period 2016-2022.”

As we can see, the cybersecurity industry has gained a lot of momentum in the past few years and is continuing to grow at the same pace. 2019 saw big merger and acquisition deals and also the rise of some prominent top mergers and acquisitions law firms. Well, it would be interesting to see where the market goes from here, if we go with the trends, it is safe to conclude that cybersecurity is going to be ruling the tech industry shortly. It is advisable to come up with new and improved strategies for your company.

Author Bio

Amy Jones is the lead legal expert at, Ahlawat & Associates-the best leading law firm of the top lawyers in India. She is a passionate writer and loves to help people in all aspects of legal matters.