CA Technologies buys cybersecurity firm Veracode, as tech M&A pumps up
CA Technologies (Nasdaq: CA) has reached a deal to purchase Veracode, a security company for applications and software developers, for approximately $614 million in cash. Veracode enhances CA Technologies’ go-to-market strategy with mid-size enterprise customers.
Veracode provides automated, cloud-based services for securing web, mobile and third-party applications throughout the software development process. The Burlington, Massachusetts-based target offers web application scanning, run-time protection, vendor application security testing, web application perimeter monitoring, static analysis and application security software products. Veracode, founded in 2006, has additional offices in London and services more than 1,400 small and large enterprise clients.
It is 30 times more expensive to fix security vulnerability during post-production than during the design, requirement identification, and architecture stage, according to a report by the National Institute of Standards and Technology.
CA Technologies operates as an information technology management software provider based in Islandia, New York. The buyer offers secure access, secure information and threat management services. “This acquisition will unify CA’s Security and DevOps portfolios with a SaaS-based platform that seamlessly integrates security into the software development process,” states CA Technologies president Ayman Sayed.
M&A in the technology, media and telecommunications (TMT) sector will soar over the next 12 months, as companies in a wide array of industries seek to increase protection against cyberattacks, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Recent deals include: LLR Partners’ acquisition of cybersecurity software provider BluVector from Northrop Grumman Corp. (NYSE: NOC); Coalfire’s, backed by two private equity firms, purchase of Veris Group; Tenable Network Security Inc.'s purchase of IT security company FlawCheck Private Registry; and Accenture’s (NYSE: CAN) buying of Redcore, an identity and access management provider for computer networks.