CYBERSECURITY MID-YEAR REVIEW | 1H 2019
We are pleased to provide you with Momentum’s Cybersecurity Market Review for 1H 2019. Strategic activity accelerated in the first half of 2019 with 314 transactions deploying over $11.7B across M&A (86 transactions, $7.0B) and financing (228 transactions, $4.7B).
Each month we provide you with an update on the dynamic Cybersecurity landscape. We highlight M&A activity, Venture Capital, Initial Public Offerings, public market valuations, sector trends and select active buyers of Cybersecurity companies.
Public Markets
- 1H 2019 has continued the positive momentum from 2018, as public security stocks have increased by 18% in 1H 2019
- Tufin was the first Cybersecurity IPO of 2019 and is up 85% over its IPO price, trading at 6.4 times 2020 revenue
- CrowdStrike soared in its public debut and is up 101% over its IPO price, trading at 23.3 times 2020 revenue
M&A Activity
- 86 M&A transactions in 1H 2019 represented a 17% decrease from 1H 2018
- Volume ($7.0B) grew significantly, representing a 34% increase over 1H 2018
- The acquisitions of KeyW by Jacobs for $815M, Recorded Future by Insight Partners for $780M, and Webroot by Carbonite for $619M led M&A activity for 1H 2019
- The most active sectors in 1H 2019 were: MSSP (14), Security Consulting (12), Network & Infrastructure Security (9), & Identity & Access Management (9)
Financing Activity
- Total financing activity (228 transactions) represents a 10% increase from 1H 2018 and is on pace for a record breaking year in 2019 with transaction volume up 59% 1H 2018 ($4.7B)
- More than 64% of 1H 2019 financing volume was from later stage financings (Series C & above)
- KnowBe4’s $309M Private Equity, Rubrik’s $261M Series E, and Cloudflare’s $150M Later Stage financing rounds led all financing activity for 1H 2019
- The most active sectors in Q1 2019 were: Risk & Compliance (29), SecOps / IR / Threat Intel (27), & Identity & Access Management (25)
Recent Announcements
- Momentum Advises Interset on Its Acquisition by Micro Focus
- Momentum Cyber’s Annual Cybersecurity Almanac Reveals Another Record Year
- Momentum Advises ADT And NightDragon On Their Strategic Investment In SAM Seamless Network
- Momentum Cyber & Optiv Publish White Paper ‘E’ Is For Efficiency: Five Trends To Relieve The Cybersecurity Skills Shortage
- Momentum Advises ADT On Its Acquisition Of SDI
- Momentum Cyber Releases Its Cybersecurity Mid-Year Review For 2018
- Momentum Advises ICEBRG On Its Acquisition By Gigamon
- Momentum Advises Bradford Networks On Its Acquisition By Fortinet
- Momentum Cyber Releases Inaugural Cybersecurity Almanac For 2018
- Momentum Cyber Launches As Industry’s Premier Cybersecurity Advisory Firm
- Momentum Advises Weblife On Its $60 Million Acquisition By Proofpoint
- Momentum Advises DATASHIELD On Its Acquisition By ADT
- Momentum Advises Cyphort On Its Acquisition By Juniper Networks
Momentum Cyber is the premier trusted advisor to the Cybersecurity industry providing bespoke high-impact advice combined with tailored, senior-level access. The firm was founded by world-class operators and advisors and caters to the unique needs of both earlier stage Founders, CEOs, & Boards as well as the complexity of later stage & public companies throughout their lifecycle – Incubation to Exit. Headquartered in San Francisco with operations globally, the founding team has closed over 250 transactions totaling over $250 billion in value.
Recent Momentum Cyber Transactions
Francisco Partners Have Invested In Reciprocity
Role: Sell Side Sector: Risk & Compliance Size: $60,000,000 Location: San Francisco, CA Press Release
Mainsail Partners Have Invested In Apptega
Role: Sell Side Sector: Governance, Risk & Compliance Size: $37,000,000 Location: Atlanta, GA Press Release