Cybersecurity Acquisitions in 2020

HelpSystems (now Fortra) acquired Vera, a cloud-based data-centric security provider, to expand its data security portfolio and provide dynamic encryption, tracking and access controls across the full data lifecycle. The acquisition is intended to strengthen HelpSystems' / Fortra's ability to protect sensitive IP and regulated data for customers across financial services, manufacturing, media & entertainment and other industries.

BlueHalo, a national security engineering platform backed by Arlington Capital Partners, has completed acquisitions of Maryland-based Base2 LLC (Base2 Engineering) and Fortego LLC to expand its cyber and SIGINT capabilities. The add-ons bolster BlueHalo's cyber, SIGINT and CNO capabilities, add prime contracts and cleared technical staff, and support the platform's strategy to grow its presence in defense and intelligence markets.

Global consulting firm Protiviti has acquired Identropy, an Austin-based identity and access management (IAM) specialist, to bolster its Security and Privacy practice and Digital Identity as a Service offering. The addition of Identropy's advisory, implementation and managed-services expertise (and its team of IAM specialists) expands Protiviti's capabilities to help enterprise clients address identity-centric security challenges.

PDI (Professional Datasolutions, Inc.) has acquired Cybera and ControlScan Managed Security Services to create a new line of business, PDI Security Solutions, expanding into cloud security and SD‑WAN. The transactions (Cybera sold by Sumeru Equity Partners) bring managed security, network security and SD‑WAN capabilities to PDI’s convenience retail, petroleum and multi‑site customers; advisors were Jefferies LLC (Cybera) and Raymond James (ControlScan).

Atos has reached an agreement to acquire Motiv ICT Security, the largest independent Managed Security Services provider in the Netherlands. The acquisition brings Motiv’s 180+ cybersecurity experts and sovereign SOC capabilities to Atos, strengthening its threat detection and response offerings and expanding its footprint in the Netherlands and Northern Europe.

Lynx Technology Partners has acquired ITSourceTEK, a privately held cybersecurity services firm, combining ITSourceTEK’s incident response, managed EDR and threat intelligence capabilities with Lynx’s integrated risk management platform and consulting services. The deal strengthens Lynx’s cybersecurity operations and expands the capabilities of its Lynx Risk Manager offering to better serve Fortune 500 and midsize customers.

Thoma Bravo has completed a strategic growth investment in Venafi, the inventor and market leader in machine identity management, valuing the company at $1.15 billion. The capital will be used to accelerate Venafi's product innovation and global growth while existing investors TCV and Foundation Capital remain shareholders.

PeakEquity Partners led a minority growth investment in Grayshift, an Atlanta-area provider of mobile device digital forensics best known for its GrayKey solution. The capital will be used to accelerate sales and marketing, expand R&D and engineering, broaden product offerings, and increase global awareness; Tom Noonan (Chairman of TEN Holdings and founding partner at TechOperators) will work with Grayshift’s management at the board level.

Sysnet Global Solutions has acquired Viking Cloud to enhance its cloud security platform, broaden its compliance and threat-detection capabilities, and accelerate enterprise market expansion. The deal combines Viking Cloud's next-generation asset, event and compliance management technology with Sysnet's payment security and compliance services; Viking Cloud CEO Robert McCullen will become Executive Chairman of Sysnet.

NortonLifeLock agreed to acquire Germany-headquartered cybersecurity software provider Avira from Investcorp for approximately $360 million in an all-cash deal announced in December 2020. The transaction, expected to close in Q1 2021 subject to regulatory approvals, strengthens NortonLifeLock’s consumer cyber-safety portfolio and builds a larger European footprint for the combined business.

Exterro Inc., a portfolio company of Leeds Equity Partners, acquired AccessData to combine digital forensics, e-discovery and Legal GRC capabilities into a single integrated enterprise platform. The deal, announced December 3, 2020, brings AccessData’s forensic tools (including FTK) and ~500 employees into Exterro’s offering to accelerate product innovation and broaden coverage across corporate, government and legal end markets; terms were not disclosed.

Sysnet Global Solutions has acquired the Managed Compliance Solutions (MCS) division of ControlScan, Inc., expanding its payment security and compliance offerings for SMBs. The deal—completed as an add-on to Sysnet's PE-backed platform—boosts Sysnet's scale in PCI compliance and managed security services across merchant and payments ecosystems; terms were not disclosed.

NetSPI has acquired Silent Break Security, a Lehi, Utah-based penetration testing and adversary simulation firm, to expand its offensive security capabilities and integrate Silent Break's software into NetSPI's Resolve PTaaS platform. Brady Bloxham, Silent Break's founder, will become NetSPI's Chief Technology Officer and the Silent Break team will continue operating from Lehi and across the U.S.

Ivanti, backed by Clearlake Capital and TA Associates, has acquired MobileIron for approximately $872 million in cash and purchased Pulse Secure from affiliates of Siris Capital (terms undisclosed). The transactions expand Ivanti's unified endpoint management and zero trust security capabilities, positioning the company as a market leader in UEM, Zero Trust, and IT Service Management.

Sverica Capital Management, a Boston-based private equity firm, has made a strategic growth investment in DeFY Security, a cybersecurity solutions provider based near Pittsburgh, Pennsylvania. The investment will support DeFY's continued growth and national expansion while DeFY's founder and CEO Justin Domachowski remains in place and Sverica partners join the company's board.

Flashpoint acquired CRFT, a no‑code security automation provider, to integrate CRFT’s playbook-driven automation into Flashpoint’s threat intelligence platform and enable CTI, fraud, and security teams to trigger automated, multi‑system workflows. CRFT co‑founder and CTO Austin McDaniel joins Flashpoint as Chief Automation Architect as part of the deal, accelerating product capability expansion and faster time‑to‑value for customers.

Barracuda Networks acquired Fyde, a Zero Trust Network Access (ZTNA) provider based in Palo Alto, California (with an office in Porto, Portugal), to add ZTNA capabilities to its CloudGen SASE platform. The Fyde solution was rebranded/rolled into Barracuda CloudGen Access and made available immediately to businesses and soon to Managed Service Providers; financial terms were not disclosed.

PKWARE has acquired Dataguise to add Dataguise's discovery and remediation technology to PKWARE's automated data security platform, expanding PKWARE's ability to find, classify and protect sensitive data across on-premises and cloud environments. Thompson Street Capital Partners, an investor in PKWARE, supported the transaction; Dataguise's existing offices in the United States, India, Europe and Canada will continue operations. Terms were not disclosed.

ACRE acquired Razberi Technologies, a Farmers Branch, Texas-based provider of video surveillance appliances and automated cybersecurity/system health monitoring software. The deal expands ACRE's video and communications capabilities—bolstering the ComNet portfolio and adding cybersecurity and system monitoring technologies to ACRE's access control brands; financial terms were not disclosed.

Kemp Technologies has acquired Flowmon Networks, a Brno-based provider of network performance monitoring and network detection and response (NDR) solutions. The deal adds machine-learning driven network visibility, encrypted traffic analysis and automated incident response to Kemp's application delivery and security portfolio; Kemp is a portfolio company of Mill Point Capital, making this an add-on acquisition.

Ping Identity Holding Corp. has acquired Symphonic Software, a UK-based leader in dynamic authorization, to accelerate dynamic authorization and advanced policy-driven access controls within Ping’s Intelligent Identity platform. The acquisition expands Ping’s capabilities for API, data and resource protection—supporting enterprises pursuing Zero Trust identity-defined security and improved compliance.

Refinitiv has signed a definitive agreement to acquire Giact Systems, LLC (GIACT), a U.S.-based leader in digital identity, payments verification and fraud prevention. The deal will integrate GIACT's real-time fraud analytics and U.S. data assets into Refinitiv's risk and compliance suite to expand its identity verification and anti-money laundering offerings.

ConnectWise, a portfolio company of Thoma Bravo, acquired cybersecurity firms StratoZen and Perch Security to expand its Fortify security management and unified Asio/Fusion platform capabilities for MSPs/TSPs. StratoZen (Salt Lake City) provides a SOAR platform and managed security services to ~1,000 organizations, while Perch offers an MSP-designed SIEM; both will be integrated into ConnectWise's security and SOC offerings.

Affiliates of Newlight Partners LP have made a strategic growth investment in Pondurance to accelerate the managed detection and response (MDR) provider’s growth, R&D and product innovation. The deal accompanies senior leadership changes at Pondurance, including Doug Howard as CEO and Niloofar Razi Howe as Board Chair, and will support geographic expansion and potential strategic M&A.

Francisco Partners has signed a definitive agreement to acquire Forcepoint from Raytheon Technologies in a carve-out transaction. The private equity firm said it will partner with Forcepoint management to invest in the company's cloud-native security portfolio and operate Forcepoint as an independent company; the deal is financed in part by debt from Credit Suisse and remains subject to regulatory review.

AE Industrial Partners (AEI) has acquired PCI, a Columbia, Maryland–based provider of cybersecurity, computer network operations (CNO), cloud engineering, systems engineering, enterprise IT, and data analytics for the U.S. intelligence and defense communities. The deal — terms not disclosed — represents AEI's ninth platform investment in Fund II and is intended to accelerate PCI's growth and reach into defense, intelligence, and national security markets.

Sysnet Global Solutions has acquired SecureTrust, a division of Trustwave, and purchased a portion of Trustwave’s MSS business focused on the hospitality sector. The deal expands Sysnet’s PCI-compliance, QSA and managed security capabilities and geographic coverage, creating the world’s largest Qualified Security Assessor (QSA) organization; Sysnet is backed by FTV Capital and True Wind Capital.

Accscient, a Richardson, Texas-based technology services company, has acquired Mission Critical Systems, an IT security reseller and integrator with offices in Pompano Beach, Florida and Atlanta, Georgia. The acquisition expands Accscient’s cybersecurity capabilities and broadens its security product and services offerings across the Southeastern United States and the Caribbean.

Corsearch, a provider of trademark and brand protection solutions, has acquired Marketly, an anti-piracy specialist, to integrate Marketly's anti-piracy technology into Corsearch's brand protection suite. The deal adds anti-piracy capabilities and machine-learning driven content protection to Corsearch's offerings, enabling a more comprehensive solution for rights holders and media companies.

TA Associates completed a majority investment in Netwrix, a data security software vendor headquartered in Irvine, California. Netwrix management and existing investor Updata Partners are reinvesting alongside TA to support Netwrix's planned global expansion, product portfolio growth and inorganic add-on strategy.

Imperva has entered into an agreement to acquire jSonar, a provider of modern database and data-security software, to expand Imperva’s data security capabilities across on‑premises, cloud and DBaaS environments. The deal will combine jSonar’s analytics and SOAR capabilities with Imperva’s application and data security product lines; jSonar CTO Ron Bennatan will join Imperva to lead the combined Data Security business.

Arista Networks agreed to acquire Awake Security, an AI-driven Network Detection and Response (NDR) provider, to integrate Awake's threat-detection capabilities into Arista’s networking and security portfolio. The deal (announced Sept. 28, 2020) is expected to close in Arista’s fiscal Q4 2020 and strengthens Arista's offerings for client-to-cloud security and real-time threat response.

CrowdStrike Holdings, Inc. agreed to acquire Preempt Security for approximately $96 million (about $86 million cash and $10 million in stock/options) to bolster its Zero Trust and conditional access capabilities. The acquisition, expected to close in CrowdStrike's fiscal third quarter 2021, will integrate Preempt's identity- and behavior-based access controls into the CrowdStrike Falcon platform to improve protection against identity-based and insider threats.

GI Partners, a San Francisco-based private investment firm, has agreed to acquire Sectigo, a digital identity and web security provider, from Francisco Partners. The deal will support Sectigo's global expansion and product innovation as GI Partners plans to accelerate growth through organic initiatives and M&A.

Avertium has acquired 1440 Security, a nationally recognized managed security service provider with a Colorado-based 24/7 security operations center, to strengthen Avertium's LogRhythm expertise and extend its XDR and advanced threat management capabilities. The deal adds a third CyberOps Center of Excellence to Avertium's existing centers and expands its managed security and incident response offerings.

CyberRisk Alliance (CRA), a business intelligence company serving the cybersecurity market, has acquired Security Weekly, an influential cybersecurity podcast and video network, from Defensive Intuition, LLC and its founders Paul Asadoorian and Matt Alderman. The acquisition expands CRA's content and mobile-optimized delivery capabilities as part of its growing portfolio of cybersecurity brands.

Fulcrum Biometrics, a San Antonio-based biometric solutions provider and subsidiary of Fujitsu Frontech North America Inc., has acquired the DelaneyBiometrics business (including IP and distribution rights) from UK-based Delaney Secure Ltd. The deal adds DelaneyCloud, DelaneyID and DelaneyGatekeeper to Fulcrum's product suite, retains the High Wycombe office and key staff, and expands Fulcrum's presence in the UK and wider European market.

Warburg Pincus has made a significant growth investment in Infoblox, joining existing investor Vista Equity Partners as equal partners. The investment will accelerate development and adoption of Infoblox's DDI products and its cloud-native BloxOne platform to expand cloud-managed networking and security services.

Telefónica Tech, through its cybersecurity unit ElevenPaths, acquired iHackLabs, a provider of cloud-based cybersecurity training platforms and pentesting services. The acquisition strengthens ElevenPaths' training and talent-development capabilities, allowing Telefónica to extend hands-on cyber training to its global customers and public-sector clients.

HelpSystems completed a cash tender offer to acquire all outstanding shares of GlobalSCAPE at $9.50 per share, accepting approximately 14.9 million shares (about 78.8% of outstanding). GlobalSCAPE will become a wholly owned subsidiary of HelpSystems and be integrated into its data security and automation portfolio to expand managed file transfer and secure data movement capabilities.

Fastly, Inc. agreed to acquire Signal Sciences for approximately $775 million in a combination of cash and Fastly Class A common stock. The deal adds Signal Sciences' developer-first web application and API protection (WAF/RASP) technology to Fastly's edge cloud platform to create an integrated Secure@Edge security offering and expand Fastly's security capabilities.

Kaseya acquired Graphus, an automated phishing-defense platform, and integrated it into its IT Complete security suite to strengthen email security for MSPs and SMBs. Graphus will operate as an independent business within Kaseya, with CEO and co-founder Manoj Srivastava leading Kaseya’s cloud email security practice to expand capabilities across Office 365 and G Suite environments.

Palo Alto Networks has entered into a definitive agreement to acquire The Crypsis Group for $265 million in cash, subject to customary adjustments and approvals. The acquisition will integrate Crypsis' incident response, risk management and digital forensics capabilities into Palo Alto Networks' Cortex XDR platform to strengthen detection, response and breach management.

ThreatConnect Inc. acquired substantially all assets of Nehemiah Security, Inc. (deal closed August 18, 2020 via purchaser vehicle NS Holdings LLC), adding Cyber Risk Quantification (CRQ) capabilities to its Threat Intelligence Platform and SOAR offering. The acquisition brings Nehemiah's Risk Quantifier into ThreatConnect's platform to enable risk-led prioritization and align security actions to business impact.

MedCrypt acquired MedISAO to integrate MedISAO's information-sharing network and Cyber Protek SBoM tooling into MedCrypt's healthcare cybersecurity platform. The acquisition brings MedISAO founder Daniel Beard into MedCrypt and positions the combined offering to help medical device manufacturers meet FDA premarket and postmarket cybersecurity guidances more efficiently.

Mimecast Limited acquired eTorch Inc., d/b/a MessageControl, a messaging security provider that uses machine learning to detect anomalous email behavior and stop social-engineering attacks. The acquisition strengthens Mimecast's Email Security 3.0 strategy by adding real-time contextual warnings, misaddressed-email prevention and ML-based user-graph detection to its Microsoft 365 and email protection offerings.

Ascend Technologies LLC, a Midwest-based managed services provider backed by private equity firm M/C Partners, has merged with Infogressive, a Lincoln, Nebraska–based cybersecurity/MSSP firm. The add-on transaction expands Ascend's cybersecurity and cloud capabilities and creates a combined organization of more than 150 U.S.-based technical and security professionals with offices in Chicago, Illinois and Lincoln, Nebraska.

Offensive Security has acquired VulnHub, the open-source catalog of legally exploitable virtual machines and training resources for penetration testers. VulnHub’s content will remain freely available as part of OffSec’s commitment to community-driven, hands-on cybersecurity training and education.

Providence Strategic Growth (PSG), the growth equity affiliate of Providence Equity Partners, has agreed to make an investment in Hornetsecurity Group while Verdane will re-invest alongside PSG. The transaction provides growth capital to accelerate Hornetsecurity's product development, international expansion and M&A strategy; financial terms were not disclosed.

Affiliates of Fortress Investment Group LLC completed an all-cash tender offer and subsequent merger to acquire Finjan Holdings, Inc., taking the cybersecurity company private at $1.55 per share. Finjan will retain its brand and continue to license its patent portfolio and related cybersecurity technologies following the closing.