Cybersecurity Market Review
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<strong>Cybersecurity</strong> M&A: A Closer Look At Deal Value & Multiples<br />
<strong>Cybersecurity</strong> M&A Activity Since 2010 With Disclosed Transaction Values And Multiples. <br />
M&A By Deal Size<br />
M&A By Valuation Multiples (EV / LTM Rev)<br />
55%<br />
0.35<br />
50%<br />
45%<br />
40%<br />
47%<br />
97<br />
0.30<br />
0.25<br />
28%<br />
30%<br />
24%<br />
35%<br />
30%<br />
25%<br />
$213M Median Deal Size For >10x<br />
0.20<br />
0.15<br />
29<br />
32<br />
25<br />
18%<br />
19<br />
20%<br />
15%<br />
10%<br />
5%<br />
14%<br />
28<br />
16%<br />
33<br />
11%<br />
22<br />
6%<br />
7%<br />
12 15<br />
0.10<br />
0.05<br />
22<br />
11<br />
0%<br />
>$0M - $50M $50M - $100M $100M - $250M $250M - $500M $500M - $1B $1B+<br />
0.00<br />
>0.0 - 3.0x 3.0x - 5.0x 5.0x - 10.0x 10.0x+<br />
§<br />
§<br />
The median exit enterprise value for <strong>Cybersecurity</strong> exits since 2010 was $65.0M<br />
M&A exits in <strong>Cybersecurity</strong> are typically below $100M – 61%+ of the time<br />
§<br />
Valuations for M&A exits in <strong>Cybersecurity</strong> vary for many reasons – growth, market leadership,<br />
customer validation, technology and team<br />
§<br />
Exits above $1B are rare representing 7% of all deals (5 public, 7 private and 3 spin-out)<br />
§<br />
Exits >10x are a minority (18%) where the buyers are typically cash rich and willing to pay what<br />
it takes (median cash balance of the buyers at time of acquisition was $2.9B and median market<br />
cap was $18.3B)<br />
Source: Momentum Partners, 451 Research, Capital IQ.<br />
Buyers<br />
38
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