Merger and acquisition (M&A) deal value in the information security market reached its highest value since 2010 at $21.6 billion. This represents an increase of 44% compared to last years’ $15 billion.
The information security market is related to cybersecurity, digital ID, critical communications, access control, and video surveillance.
Information Security Market M&A Surges To $21.6 Billion
During the last years, M&A deal value in the information security market worldwide has been substantially growing.
Back in 2012, for example, the value of M&A in the industry reached $1.4 billion, the lowest point since 2010. After that moment, things changed evolving into $7.5 billion in 2013, $9.6 billion in 2015, and $21.6 billion in the first 9 months of the year.
The increase in the value of M&A in the information security market between 2012 and 2019 is astonishing. It has grown 1442% in 7 years.
It is worth pointing out that the number of merger and acquisition deals in the industry remained stable during the last years but it dropped to the lowest level since 2013 in 2019.
Indeed, until September this year, there were 100 M&A deals in the space, 23% less compared to last years’ 131. However, as mentioned before, data for the last months of 2019 should yet be compiled and aggregated.
Surprisingly, with a lower number of deals in the information security market worldwide in 2019, the value handled and arranged by companies is much higher than ever before.
Despite not having 2019 completely compiled, the results are already promising for the whole industry that continues growing and expanding despite a slowing economy in several regions.
With the current data, each of these 100 M&A deals in the space in 2019 reported an average value of $218 million compared to $114.5 million in 2018.
In 2017, the average value per deal amounted $110.8 million and $140 million in 2016. The worse year was 2012, with an average value per deal of $19.1 million.
The information security technology market is continuously expanding, and this can be seen in the value of M&A registered as of September this year.
As our previous report shows, by 2023, the market is expected to reach $151.2 billion due to robust investment in key security solutions. Companies are investing large amounts of money in data loss prevention, compliance and risk management, among other things.
According to a recent interview exclusively for PreciseSecurity.com, the CEO of Avira Antivirus, Travis Witteveen, explained that malware is one of the most significant threat vectors that users are currently facing. On the matter, he commented:
“Malware continues to be the largest threat vector that users are facing today. We do see a significant increase in complementary services based on protecting users’ privacy; password managers and VPNs.”
As the information security technology market follows an expanding trend, the value and number of M&A are expected to continue growing in the coming years as well.