Business cybersecurity mergers and acquisitions strategy guide by Mordechai Gal? The world is now more reliant on technology than ever before. The emergence and growth of technology has had a positive impact on human life, but the convenience has, however, come with the risk of cyber attacks. If you use a tech device for whatever reason, then you’re highly likely to be exposed to a cyber attack. You’ll need to be protected, and that’s where cyber security comes in. Cyber security is the protection of electronic data and information. It’s the defense of electronic systems on devices, like computers, cell phones, servers, and networks, from malicious attacks. Regardless of who you are, it’s important to keep your data safe from unauthorized access.
Protecting your business against such attacks is not impossible, but you must be diligent. Regular data backups should be mandatory. It’s imperative that you use an offline or cloud-based backup, otherwise the ransomware can spread to those backups over the network in the same way they did your original files. Additionally, simple strategies such as two-step authentications can limit the spread of harmful malware and if user information is stolen, it can’t then be reused. Proactive security monitoring is a critical component of a fully functioning IT facility. By having the security in place, you automatically minimise the risks against emerging cyber threats. Our monitoring services can oversee your systems 24/7 and react to threats immediately to mitigate damage. Our team of experts will respond to alerts quickly and efficiently, providing you with ultimate peace of mind.
Although most common in the form of emails, phishing can take place outside of this field. Hackers are now using punycode, a lookalike method which sees remarkably similar domain names linking to a fraudulent, malware-infested site, gaining access to your private information in seconds. It’s important to be vigilant and if something looks suspicious, it probably is. Having standard anti-virus software within your business could certainly help you maintain security short term, but with consistent new threats ready to strike at any time, it’s no longer enough to keep your systems secure. Most commonly, it is in fact user error that allows malware threats to find their way into a business. A staggering 95% of cybersecurity attacks are a result of some kind of human error. We all make mistakes, and the likelihood is more so if the threat is presenting itself in disguise. It could be a simple click on a deceiving link, or not updating your systems as soon as required. Surprisingly, standard protocols like passwords are still not being implemented in companies. This offers cybercriminals an all access route into your business’ systems. A simple security measure is to make sure all company passwords are strong and cannot be easily guessed.
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.
While mergers and acquisitions generally lagged during the COVID-19 pandemic, they didn’t stop completely. Several notable transactions have taken place since early 2020. In March 2020, Sophos announced the completion of its take-private acquisition by Thoma Bravo. Later that summer, Thoma Bravo finalized its acquisition of Exostar, and earlier this year it agreed to acquire Proofpoint for a whopping $12.3 billion. It wasn’t the only private equity firm having a busy year: Symphony Technology Group bought RSA, McAfee’s enterprise business and, more recently, FireEye’s product business. Early last year, Insight Partners bought Armis for a valuation of $1.1 billion.
Recent cybersecurity consolidation news: Wipro yesterday said it will acquire Austin, Texas-headquartered Edgile for USD $230 million, a move that will strengthen the IT major’s play in the cybersecurity services space. Edgile’s experienced cybersecurity and risk management professionals will allow Wipro to further enhance its cybersecurity and risk consulting capabilities for the benefit of its customers, a regulatory filing said. In addition, the company’s ‘strategy-first’ approach and ‘Quick Start’ solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services, it added. The transaction is expected to be completed before Mar. 31, 2022, subject to regulatory approvals and customary closing conditions, the filing said.
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. Access-Heat.com 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.