March’s M&A News Roundup

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Following a relatively quiet start to the year for M&A deals in the cybersecurity sector, activity picked up in March 2023. Included in our news roundup this month are announcements involving big-name cybersecurity companies Rapid7, Cisco and Logpoint, as well as a cybersecurity acquisition by global payments giant Mastercard. 

Rocket Software Acquires Key Resources

Software development company Rocket Software agreed a deal to purchase Key Resources for an undisclosed fee. The transaction, announced on March 1, is designed to boost Rocket’s mainframe security capabilities, enabling customers to standardize on their preferred mainframe security solutions.

HPE Acquires Axis Security

On March 2, Hewlett Packard Enterprise (HPE) announced it had entered into a definitive agreement to acquire cloud security provider Axis Security. The move will enable HPE to offer a unified SASE solution, expanding its edge-to-cloud security capabilities. The transaction is expected to close by the end of Q2 of the fiscal year.

Optiv Expands Business with ClearShark Purchase

Information security firm Optiv announced the acquisition of ClearShark on March 13 as it begins a major expansion in the federal government space. Optiv’s CEO Kevin Lynch said the deal will be the first of a number of other M&A deals the firm will be involved in as it continues to grow its presence.

Rapid7 Enhances Ransomware Defenses with Minerva Labs Acquisition

Cloud risk and threat detection firm Rapid7 has acquired Minerva Labs as it seeks to extend its capabilities with the ability to orchestrate advanced ransomware protection. The deal, announced on March 15, is worth approximately $38m in cash and stock, subject to certain adjustments.

Mastercard Increases Protections with Purchase of Baffin Bay Networks

Global payments giant Mastercard has acquired cloud-based cybersecurity firm Baffin Bay Networks to help protect customers against increasingly challenging threats. Announced on March 20, the deal will enable Mastercard to utilize Baffin Bay’s AI technology solution to automatically filter and counteract malicious internet traffic.

XM Cyber Acquires Confluera

On March 22, XM Cyber revealed it has acquired Confluera for an undisclosed fee. The purchase of attack interception company Confluera will enable XM Cyber to expand its Continuous Exposure Management Platform to provide all aspects of cloud security. The transaction comes less than a year after the firm acquired Cyber Observer.

Cisco Announces Intention to Acquire Lightspin

Tech giant Cisco revealed its intention to purchase cloud security company Lightspin in a blog post published on March 29. The move is part of Cisco’s focus on boosting its cloud-native technologies portfolio amid increasingly complex multi-cloud environments. When the deal closes, the innovative team from Lightspin will join Cisco’s Emerging Technologies & Incubation business.

Summa Equity Buys Majority Stake in Logpoint

Threat detection and response firm Logpoint will see private equity firm, Summa Equity, take a majority stake in Logpoint as part of its incorporation of UN Sustainable Development Goals. The investment is subject to regulatory approval, which is expected in Q2 2023.

Speaking to Infosecurity during the Logpoint  ThinkIn conference in Copenhagen on March 7, 2023, Jesper Zerlang, Logpoint’s CEO, said explained the company spent 12 months looking for a financial partner and Suma Equity appealed in part because of their European, Scandinavian even which he described as “the icing on the cake” with regards to the cultural fit.

Regarding their operations in the US, Zerlang said that they will continue to service existing current partners and clients but will now turn their focus to the European landscape, which he said is not as mature as the US market.

“Because Summa Equity is ESG-focused, basically investing in everything that supports the betterment of society, cybersecurity now plays such a significant role,” he explained. He added that because Logpoint is a platform investment, rather than just a technology, it is a vehicle that can carry other activities, and inform other acquisitions down the road. 

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