Finance Monthly - December 2021

With the number and severity of cyber-attacks continuing to grow, companies across the board are finally taking notice of their cyber risks. But with organisations struggling to build in-house cyber security operations (primarily as a result of the skills shortage), this has created a huge opportunity for third-party cyber security companies to fill the void with their software and service offerings. The knock-on effect of this has been a flurry of high-value cyber security deals and vendor consolidation. According to Pitchbook data, the total capital invested in cybersecurity deals grew at a CAGR of 30% per year between 2012 and 2019. In 2020, both the number and value of deals contracted heavily as a result of the global pandemic. However, as of July 2021, the cyberspace deal environment seems to have become red-hot again, with global deals worth €21 billion. 2021 could be a record year for cybersecurity deals. There are multiple investors in the space, including cyber natives (young companies formed who provide cyber software or services), global consultancies, technology firms, professional services organisations, telcos, engineering businesses and defence companies. The US market is the most mature and advanced globally, but the UK and Europe are not that far behind. Alfonso Marone, UK Head of Deal Advisory for TMT at KPMG UK, delves into the topic. Alfonso Marone UK Head of Deal Advisory for TMT, KPMG UK CYBER MARKET Consolidation Opportunities in a Red Hot Finance Monthly. Fron t Cove r Fea t ur e 11