Cybersecurity M&A activity was subdued in 2022 with decline more prominent in value terms, finds GlobalData.
A total of 410 mergers & acquisitions (M&A) deals were announced globally in the cybersecurity space during 2022, with the disclosed value of these deals standing at $48.3 billion, according to GlobalData. The leading data and analytics company notes that this is a decline of 14.6% in deal volume and a massive 56.7% decline in deal value compared to the previous year.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although overall 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.”
M&A deal volume consistently 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% year-on-year (Y-o-Y) 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.
Similarly, total M&A deal value also remained significantly high and stayed above $100 billion in 2021 due to the announcement of big-ticket deals such as the acquisition of McAfee for $14 billion by a consortium (comprising Advent International, Crosspoint Capital Partners, Permira Holdings, CPP and GIC) and Thoma Bravo’s acquisition of Proofpoint for $12.3 billion, among others.
Bose adds: “However, there were no deals valued more than $10 billion announced in 2022. Resultantly, there was a massive Y-o-Y drop in total deal value in 2022.”
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