Deals in cybersecurity business drop significantly

The number of mergers & acquisitions (M&A) deals in the cybersecurity business space during 2022 plummeted to 410 (–14.6 percent) with the disclosed value of $48.3 billion (–56.7 percent), according to GlobalData.
Deals in cybersecurity business in 2022
“Though M&A activity remained subdued for the sector, the decline is more prominent in terms of value than volume, suggesting that investors were increasingly cautious in committing to big investments amid volatile market conditions,” Aurojyoti Bose, Lead Analyst at GlobalData, said.

M&A deal volume remained above 400 for the fourth consecutive year through 2022. It reached an all-time high in 2021, with 480 deals announcements. Despite suffering a 14.6 percent year-on-year decline, deal volume in 2022 remained over 400.

Total M&A deal value in the cybersecurity space reached an all-time high at $126.7 billion in 2018 on the back of some high-value transactions that were announced during the year.

Total M&A deal value stayed above $100 billion in 2021 due to the announcement of big-ticket deals such as the acquisition of McAfee for $14 billion by Advent International and Thoma Bravo’s acquisition of Proofpoint for $12.3 billion, among others.