Cyber Threats Targeting Mergers and Acquisitions

Executive Summary
Global merger and acquisition (M&A) activity reached record-breaking deal values in 2015 at
over $4 trillion, with the resulting deals expected to add $1.5 to $1.9 trillion in value to these
companies. 1 In 2016, high levels of activity are expected to continue.
While mergers and acquisitions propel companies forward, the M&A process also fuels
significant opportunities for cyber criminals. Failure to secure sensitive information during
this time opens the door to threat actors looking to profit by exploiting financial markets and
proprietary intellectual property (IP). Given the value to be gained once the companies are
combined, it’s safe to say that ensuring successful integrations will be a priority on boardroom
agendas. Security, both during the M&A process and after the deal is closed, will play a central
role in positive outcomes.
In this report, Digital Shadows examines cyber risks or possible degradation to a company’s
security posture as a result of the M&A process. The report takes historical cases of threat
actors and applies other likely threats across the five-stages that companies typically go
through during a merger or acquisition. Along each stage new risks emerge and advanced
attackers, well-versed in corporate espionage techniques, stand to profit. Individuals’ behaviors,
unintentional clues and vulnerabilities in inherited network infrastructure and software can all
present risk. However, organizations armed with these insights can better understand the threats
they face and mitigate accordingly.
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