Market Update: Cybersecurity & Infrastructure Services Q2 2022
In Q2 of 2022, the global Cybersecurity & Infrastructure Services industry posted its largest quarterly capital investment at an incredible $83.4 billion, following the previous all-time highs of Q3 2021 which was $52.2 billion. Specifically, the quarter saw 400 M&A and Buyout/LBO deals globally, a roughly flat change from the previous quarter’s number of deals. Additionally, the majority of the invested capital came in the form of venture capital funding (219 deals), which took place primarily in the United States, the United Kingdom, Canada, and Israel.
Global Supply Chain is becoming increasingly vulnerable. Industry experts stress that the supply chain will be the result of more cyberattacks as the impact of the pandemic and the conflict in Eastern Europe have exposed the potential economic devastation that a supply chain attack could inflict. Gartner estimates that 45% of companies globally will be the victim of a supply chain cyberattack by 2025. The estimate is 3 times the consensus just one year prior. Due to the warnings and threats posed to the global economy, companies will look to allocate more of their capital towards developing and implementing software designed to defend against potential threats.
Adopting cloud services is uncharted territory from a cybersecurity standpoint. The work-from-home trend, accelerated by the pandemic, has caused more and more companies to adopt cloud infrastructure and services to reflect their current needs. The efficiency and cost savings benefits make cloud-oriented products attractive to businesses and hackers alike. As businesses dive in headfirst and embrace these new technology trends, hackers will be given a plethora of opportunities to exploit the new technologies and take advantage of the lack of experience that businesses have in this emerging market.
7MA has completed numerous M&A transactions for companies operating in the aforementioned sectors and has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and most active strategic and financial buyers. Please contact Leroy Davis, Sydney Scadden, Tomas Adduci, and/or Trent McCauley if you would like to learn more about Cybersecurity & Infrastructure Services.