Cybersecurity Acquisitions in 2023

Palo Alto Networks completed the acquisition of Talon Cyber Security to integrate Talon’s enterprise browser technology into its Prisma SASE offering. The deal extends Palo Alto’s SASE capabilities by protecting managed and unmanaged devices and will make Talon’s Enterprise Browser available to qualified SASE AI customers at no additional cost.

SonicWall has acquired Banyan Security, a provider of security service edge (SSE) and zero-trust access solutions, in a deal completed December 26, 2023. The acquisition adds Banyan's cloud-native zero trust and ZTNA capabilities to SonicWall's portfolio to accelerate its SASE/SSE offerings and extend cloud-based secure access for customers and partners.

Mend.io has acquired Israeli cyber risk assessment startup Atom Security in a deal valued at several million dollars. Atom's co-founders will join Mend.io's Cloud Native division as Mend integrates Atom's technology to expand application-layer coverage and reduce irrelevant findings.

Cisco announced it intends to acquire Isovalent, a cloud-native networking and security startup best known for developing eBPF-based projects such as Cilium and Tetragon, to bolster its multicloud networking and security capabilities. The Isovalent team will join Cisco's Security Business Group and Cisco said it will continue to support the open source projects; the deal is expected to close in Cisco's third fiscal quarter of 2024.

Proofpoint, Inc. has completed the acquisition of Tessian, a provider of AI-powered behavioral email security and data loss prevention. The deal integrates Tessian's machine-learning detection for misdirected emails and data exfiltration into Proofpoint's threat and information protection platform to expand its AI-driven defenses across email, cloud, and endpoints.

San Diego-based cybersecurity provider DeepSeas has acquired GreyCastle Security, a Troy, New York–based cybersecurity professional services firm. The deal expands DeepSeas' advisory, audit-readiness, and incident response capabilities — strengthening its prepare/prevent/protect service framework and enabling packaged compliance offerings for midmarket clients.

Francisco Partners has completed an all-cash acquisition of Blancco Technology Group for 223 pence per share, valuing the business at approximately £175 million. The deal takes Blancco private; Francisco Partners cited opportunities for organic and inorganic growth as well as demand driven by sustainability and e-waste reduction.

Thales has acquired cybersecurity firm Imperva from private equity firm Thoma Bravo in an all-cash transaction valuing Imperva at approximately $3.6 billion. The deal expands Thales' data and application security capabilities, immediately boosting its cybersecurity revenue base and creating a larger global cyber portfolio; the transaction has closed.

BlueVoyant has acquired Conquest Cyber and will integrate Conquest's ARMED ATK SaaS risk-management technology into BlueVoyant's internal and external cyber defense platform. The deal is supported by a Series E financing round of more than $140 million led by existing investor Liberty Strategic Capital and ISTARI to accelerate development of comprehensive managed detection, response, and cyber risk posture solutions for regulated and government customers.

Calgary-based Jot Digital has acquired Keep Secure, a technology firm specializing in cloud infrastructure and cybersecurity. The acquisition strengthens Jot Digital’s security and cloud capabilities, enabling expanded service offerings and accelerated innovation for its clients.

Thrive, a NextGen managed services provider, has acquired 4IT, an award-winning Managed Service Provider based in Miami, Florida. The deal strengthens Thrive's cybersecurity, cloud and 24x7 IT support capabilities in South Florida and represents Thrive's 20th acquisition since 2016 and its fourth in Florida.

IP Pathways, a Midwest technology solutions and managed services provider, has acquired Tenax Solutions, a cybersecurity firm founded in 2019 that provides vulnerability scans, penetration testing, and compliance services. The acquisition expands IP Pathways' security and compliance capabilities and will allow the combined business to deliver enhanced information security offerings to MSPs, SMBs and enterprise clients across the United States.

SonicWall has acquired Solutions Granted, Inc. (SGI), a U.S.-based Managed Security Service Provider (MSSP) that provides SOC-as-a-Service, Managed Detection and Response (MDR) and other managed security services tailored for MSPs and MSSPs. The acquisition expands SonicWall’s partner-focused portfolio with U.S.-based SOC capabilities and recurring managed-security offerings designed to accelerate partner growth and improve automated threat detection and response.

Yuengling's Ice Cream Corporation (OTC: YCRM) announced the acquisition of ReachOut Technology, a managed service provider focused on cybersecurity and IT services. As part of the transaction Rick Jordan will assume the role of President & CEO and join the board of Yuengling's, while outgoing executives will assist with the transition.

Washington Harbour Partners LP has acquired SIXGEN Incorporated, a cybersecurity firm serving U.S. national security, intelligence, defense and critical commercial industries. SIXGEN will remain led by founder and CEO Ethan Dietrich, and Washington Harbour said it will invest to accelerate SIXGEN's growth and expand its high-assurance cyber and cyber-AI capabilities for government and critical infrastructure customers.

C3 Integrated Solutions and Ingalls Information Security announced a merger in which C3 will integrate Ingalls' cybersecurity capabilities—including SOC, MDR/MXDR, and DFIR—into its compliance-focused managed services for the U.S. Defense Industrial Base. The deal brings Ingalls' DoD and defense-focused cyber expertise and leadership (Jason Ingalls becomes C3's Chief Cybersecurity Officer) to strengthen C3's IT, cybersecurity, and CMMC compliance offerings.

Falfurrias Capital Partners announced a platform investment in Synergy ECP, a Columbia, Maryland-based provider of software engineering, cybersecurity and systems engineering services to the U.S. Intelligence Community and Department of Defense. Synergy ECP founders Bruce Howard, Dave Wisniewski and Chad Michael will continue to lead the company while Falfurrias principals join the board to support capability expansion and growth.

Rockwell Automation completed its acquisition of Verve Industrial Protection to expand its industrial cybersecurity offerings, integrating Verve's Verve Security Center into Rockwell's Lifecycle Services. The deal brings vendor-agnostic OT asset inventory and vulnerability management capabilities to Rockwell's customers and will be showcased at Rockwell's Automation Fair.

Accenture has acquired Madrid-based Innotec Security from parent company Entelgy Group, expanding its cybersecurity-as-a-service, cyber resilience, and managed security services capabilities in Spain. The deal adds approximately 500 cybersecurity professionals to Accenture Security and deepens Accenture's regional footprint and MSS capabilities across Spanish cities including Barcelona, Seville and the Basque Country.

ReachOut Technology, a Chicago-based IT and cybersecurity firm, has acquired RedGear, LLC, an El Paso–based provider of IT services, structured cabling and secure access control. The deal adds nearly $4 million of revenue and expands ReachOut's capabilities in education and government (including CMMC/DoD compliance) markets.

Redhorse Corporation has completed the acquisition of Allied Associates International (A2I), a Gainesville, Virginia-based cybersecurity and engineering firm. The deal adds A2I's cyber data analytics and software development capabilities and nearly 500 technical employees to Redhorse's national security-focused data analytics, engineering, and AI/ML platform.

Palo Alto Networks has completed the acquisition of Israel-based Dig Security (Dig Security Solutions Ltd.), a provider of Data Security Posture Management (DSPM) technology, integrating its capabilities into the Prisma Cloud platform. The deal was announced completed on Dec. 5, 2023; media reports put the purchase price at about $400 million.

SailPoint Technologies' UK subsidiary completed the acquisition of UK-based Osirium, a provider of privileged access and privileged identity management solutions. The Osirium technology will be integrated into SailPoint's Identity Security Cloud and Atlas platform to provide unified visibility and control across regular and sensitive access types.

Summit 7 has acquired CSW Systems to expand its classified IT managed services and compliance capabilities for Department of Defense and Intelligence Community customers. The deal brings CSW’s expertise in IL6-classified data processing and continuous compliance into Summit 7’s portfolio to enhance classified cloud and compliance offerings.

WELL Health Technologies’ cybersecurity unit Cycura completed tuck-in acquisitions of Seekintoo Ltd. and Proack Security Inc. to expand its managed detection, SOC and offensive security capabilities. The deals strengthen Cycura’s ability to protect patient health information and bolster its services across healthcare, government and enterprise customers in North America.

Sixth Street Growth, the growth investing platform of Sixth Street, made a significant minority investment in Keyfactor at an enterprise value of approximately $1.3 billion. The capital will support Keyfactor’s continued rapid growth in machine identity and PKI solutions, and Sixth Street Growth representatives will join Keyfactor’s board to help accelerate expansion.

Accenture has acquired MNEMO Mexico, a Mexico City–based managed cybersecurity services provider, adding 229 cybersecurity professionals and a 24/7 security operations center to Accenture Security. The deal expands Accenture's managed security capabilities and local footprint in Mexico and Latin America to support regional and North American clients; financial terms were not disclosed.

Cuentas, Inc. (Nasdaq: CUEN) signed a binding letter of intent to acquire a majority stake in World Health Energy Holdings, Inc. (WHEN Group) from principal shareholder UCG, Inc., resulting in WHEN becoming a majority-owned subsidiary of Cuentas upon closing. The deal is intended to integrate WHEN Group's cybersecurity, AI and telecom technologies into the Cuentas mobile/fintech platform to expand product capabilities and protect Cuentas' partners and users.

Arctic Wolf announced its intent to acquire Revelstoke, a creator of a SOAR platform built on a Unified Data Layer, to accelerate security operations automation and AI-driven response. The acquisition will integrate Revelstoke's SOAR capabilities into the Arctic Wolf Security Operations Cloud to improve detection-to-response workflows, expand integrations, and reduce alert noise for customers.

Tenable Holdings has completed its acquisition of Ermetic, a cloud-native application protection platform and leading provider of cloud infrastructure entitlement management. The deal integrates Ermetic's CIEM and CNAPP capabilities into Tenable One and Tenable Cloud Security to expand cloud identity and infrastructure security, improve contextual risk visibility, and simplify remediation for customers.

Cyber Advisors, a Goldner Hawn portfolio company, has acquired White Oak Security, an offensive cybersecurity firm based in Plymouth, Minnesota. The deal expands Cyber Advisors’ offensive testing and adversarial simulation capabilities and brings White Oak’s experienced talent into Cyber Advisors’ security services platform.

GuidePoint Security, a Herndon-based cybersecurity solutions provider, closed a growth funding round led by Audax Private Equity with participation from prior investor ABS Capital Partners. The investment will be used to accelerate GuidePoint's U.S. growth and support international expansion; terms were not disclosed.

Zyston, a Dallas-based managed security services provider backed by Sverica Capital Management, has acquired Blue Lava, a security program management SaaS platform. The deal is an add-on to Zyston's platform strategy to expand its Cybersecurity Performance Management (CPM) capabilities by integrating Blue Lava into its CyberCAST product.

Lumifi has acquired Castra Managed Security to expand its SIEM and managed detection and response (MDR) capabilities, combining Lumifi's ShieldVision SOC platform with Castra's Exabeam expertise. The deal strengthens Lumifi's 24/7 SOC offerings and aims to scale Castra's services to a broader customer base across regulated industries.

LOCH Technologies (LOCH.io) has acquired Avirtek, Inc., a Tucson-based developer of AI/ML-driven autonomic cybersecurity (ACS) technology, to integrate Avirtek's predictive data detection and response (DDR) capabilities into LOCH's AirShield platform. Avirtek founder Professor Salim Hariri will join LOCH as Senior Vice President of Research and Development to accelerate integration of behavior analytics and encrypted-traffic detection features.

Bloom Equity Partners completed a buyout of RightCrowd's Workforce Access Software and Presence Control businesses via a carveout of RightCrowd Software Pty Ltd. and RightCrowd NV from ASX-listed RightCrowd Limited. The deal (approved August 24, 2023 and closed in late September 2023) gives Bloom a platform in physical identity and access management (PIAM) software, while the remaining cyber-focused business within the listed entity will be rebranded Gathid Limited.

apexanalytix, a PE-backed provider of supply chain risk management, has acquired Darkbeam, a London-based supplier cyber risk management platform. The deal integrates Darkbeam’s cyber and dark-web threat detection capabilities into apexanalytix’s supplier risk suite to provide native, real-time monitoring of supplier cyber risk as an add-on capability to the apexportal.

ProofID, a Maven-backed identity and access management (IAM) specialist, has acquired Austin-based Regatta Solutions Group, an Identity Governance and Administration (IGA) integrator, to broaden its IGA capabilities and launch a combined IAM managed services offering across Europe and North America. The combined business is projected to generate more than £27 million (approximately $32 million) in 2023; Maven Capital Partners and related Maven funds provided additional equity to part‑fund the transaction. Regatta’s 35 identity specialists will be integrated into ProofID, adding an Austin, Texas base to ProofID’s existing US presence in Colorado Springs.

Stratascale, an SHI International company, has acquired Vector0, an Attack Surface Management (ASM) provider. The purchase brings Vector0's continuous ASM platform and vulnerability discovery capabilities into Stratascale's cybersecurity services to strengthen proactive threat and vulnerability management for its clients; terms were not disclosed.

Neovera, a managed cybersecurity and IT services provider (and portfolio company of 424 Capital), acquired Kansas City-based 10-D Security and its sister firm AppliedCS. The deal bolsters Neovera’s cybersecurity, risk management and compliance capabilities—particularly for financial institutions—and represents an add-on acquisition to expand its service offerings.

WatchGuard Technologies acquired CyGlass Technology Services to integrate CyGlass’s cloud-native, AI/ML-based network detection and response technology into the WatchGuard Unified Security Platform. The acquisition is intended to add Network Detection and Response (NDR) and accelerate Open XDR capabilities for WatchGuard’s partners and customers, particularly MSPs and mid-sized enterprises.

CrowdStrike has agreed to acquire Bionic, an Application Security Posture Management (ASPM) pioneer, to extend its Falcon Cloud Security / CNAPP offering and deliver code-to-runtime cloud security in a unified platform. The purchase price is expected to be paid predominantly in cash with a portion in stock and options; the deal is expected to close in CrowdStrike's fiscal third quarter subject to customary conditions.

Parsons Corporation acquired Columbia, Maryland-based Sealing Technologies, Inc. in a transaction valued at up to $200 million (including $175 million cash at closing and a $25 million earn-out). The acquisition expands Parsons' defensive cyber, AI/ML, edge computing, and critical infrastructure protection capabilities and brings nearly 150 SealingTech employees (70% with security clearances) into Parsons' Defense & Intelligence unit.

SafeBase has acquired Stacksi, a Y Combinator‑backed, AI‑powered security questionnaire automation startup, to integrate automated responses into its Trust Center platform. The deal is intended to accelerate security due diligence and reduce friction in B2B buying by combining SafeBase's customer-facing Trust Center with Stacksi's AI questionnaire automation.

Check Point Software Technologies Ltd. has agreed to acquire Atmosec, an early-stage SaaS security startup that discovers and disconnects malicious SaaS applications, prevents risky third-party communications, and fixes SaaS misconfigurations. The acquisition — expected to close by mid-September 2023 — will integrate Atmosec's capabilities into Check Point Infinity to strengthen Check Point's SaaS security and SASE offering.

Netskope has acquired Kadiska, a France-based digital experience monitoring (DEM) startup, to integrate Kadiska’s real-user and end-to-end network/application performance monitoring into Netskope’s SASE platform. The acquisition strengthens Netskope’s proactive Digital Experience Management (P-DEM) capabilities across SD-WAN, SSE and cloud applications; financial terms were not disclosed.

Battery Ventures has acquired GrammaTech's software products division, including the CodeSonar and CodeSentry product lines, and established the business as a new independent company, CodeSecure, Inc., headquartered in Bethesda, Maryland. The investment is intended to drive growth of the application security testing product portfolio and enable CodeSecure to expand across end markets such as automotive, aerospace & defense and medical devices while GrammaTech retains its cybersecurity research and services business.

First Advantage Corporation (NASDAQ: FA) has acquired Infinite ID, a U.S.-based digital identity authentication company and portfolio company of Enlightenment Capital, in an all-cash transaction valued at $41 million. The deal expands First Advantage's digital identity and authentication capabilities in the United States by integrating Infinite ID's biometric and identity solutions into its screening and identity product portfolio.

Dataprise has acquired the clients and employees of Cohere, a New York City–based security-first managed services provider, expanding Dataprise's operations in New York City and strengthening its financial services and regulated-industry capabilities. Dataprise, a portfolio company of Trinity Hunt Partners, will integrate Cohere's more than 150 client relationships into its nationwide managed IT, cybersecurity, cloud, and data protection offerings.

Malwarebytes has acquired Cyrus, a startup that provides consumer-focused online privacy and identity protection technology. The acquisition brings Cyrus' team and mobile-first privacy capabilities into Malwarebytes to strengthen its consumer privacy, VPN and browser protection offerings.