The IT Security sector continues to experience a high level of M&A activity due to an increase in the amount of data that companies are now accessing through various channels and technology platforms. With access to additional data comes additional scrutiny of security measures in place to protect these data points and insights. The importance of information security has shifted from a value-add to a requirement and is more broadly being viewed as the foundation of a technology infrastructure. With companies that are late to the game or that have various other technology focuses, it's often more economical to consider acquisition of security capabilities rather than building them organically.
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants