The report revealed 410 cybersecurity M&A deals announced globally during 2022, with a disclosed value of these deals totaling $48.3 billion, a 14.6% decline in deal volume, and a massive 56.7% decrease in deal value compared to 2021.
“While overall M&A activity remained subdued for the sector, the decline is more prominent in value than volume terms, suggesting that investors have been increasingly cautious about committing to large investments amid challenging conditions. volatile markets,” said Aurojyoti Bose, principal analyst at GlobalData.
Volume of cybersecurity M&A deals over the years
According to the GlobalData report, the volume of M&A deals remained above 400 for the fourth consecutive year.
In 2021, M&A deal volume reached an all-time high, with 480 deal announcements. In 2022, despite suffering a year-on-year (YoY) decline of 14.6%, trading volume remained above 400.
Cybersecurity M&A deal value over the years
In 2018, the total value of M&A transactions in the cybersecurity space hit an all-time high of $126.7 billion thanks to a few high-value transactions.
Similarly, in 2021, the total value of M&A deals remained significantly high, staying above $100 billion due to the announcement of major deals, such as the $14 billion acquisition of McAfee. by a consortium (composed of Advent International, Crosspoint Capital Partners, Permira Holdings, CPP and GIC) and the acquisition of Proofpoint by Thoma Bravo for $12.3 billion, among others.
However, 2022 had no announced deals valued at more than $10 billion.
“As a result, there was a massive year-over-year drop in total transaction value in 2022,” Bose said.
