S&P Analysis: Cybersecurity M&A Still Hot In Q2, But Economic Uncertainties Weigh On Outlook

Published on

The second quarter saw 45 cybersecurity deal announcements totaling $12.94 billion in transaction value, according to a new data analysis from S&P Global Market Intelligence’s 451 Research. While the deal volume was slightly lower than the 52 announcements reported in the same period a year earlier, it remained well above the second-quarter volume seen in 2020, 2019 and 2018.

Cybersecurity M&A

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 2022 hedge fund letters, conferences and more


Cybersecurity M&A Still Hot In Q2

Key highlights from the new analysis include:

  • Cybersecurity acquirers valued their targets at 7.3x trailing 12-month revenue on average in the second quarter of 2022, up from 5.5x in the same period of 2021.
  • The wider tech sector reported deal values at 3.2x trailing 12-month revenue on average in the second quarter of this year.
  • A growing number of companies plan to invest in cybersecurity in the near term, according to 451 Research's latest quarterly Voice of the Customer: Macroeconomic Outlook, SME Tech Trends survey. A third of surveyed IT decision-makers representing small- and medium-sized enterprises said they will focus IT spending on security in the next 12 months, up from 26% a year prior. The survey was fielded in February 2022.
  • "With more operations moving online, security is expected to surpass all other IT categories," wrote 451 analyst Malav Parekh in a report on the survey's findings. "Security is also the top spending focus of organizations across all stages of digital transformation.".

Cybersecurity M&A

Signup to ValueWalk!

Get the latest posts on what's happening in the hedge fund and investing world sent straight to your inbox! 
This is information you won't get anywhere else!