Market Update: Cybersecurity & Infrastructure Services – Q3 2021
In Q3 of 2021, the Global Cybersecurity Industry saw its largest median transaction value ever at an astounding $153 million. A median deal size of $23.55 million in 2021 Q2 rose dramatically this following quarter for a multitude of reasons. Leading this growth was IT service providers continuing to adapt to and integrate remote workforce environments and their related security protocols, especially in the healthcare, government, and aerospace & defense industries. As a result of this, analysts believe that 40% of boards of directors will have a dedicated cybersecurity committee overseen by a qualified board member by 2025.
In the nearer term, analysts also expect modern privacy laws to cover the personal information of 3/4ths of the world’s population by 2023. Although potentially hard to believe, it is essential to realize that security management and risk exposure have become board-level issues for leading enterprises around the world. With both the quantities and complexities of security breaches increasing, enhanced legislative security demand and B2B cybersecurity solutions are at an all-time high.
The third quarter of 2021 recorded 103 deals, a 10% decrease compared with Q2 2021 numbers. Deal valuations remained especially high though globally as both strategic and financial buyers aggressively purchased cybersecurity companies, especially those specializing in automation and workflow software, government-specific services, IT consulting and outsourcing, network management software, and systems and information management.
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 Garth Martin, Sydney Scadden, and/or Trent McCauley if you would like to learn more about our Cybersecurity & Infrastructure Services.