Thycotic has purchased network security company Cyber Algorithms for an undisclosed amount. The deal for the target’s big data analytics accentuates the interest in cybersercurity firms due to increased hacker activties. Strategic buyers and dealmakers are optimistic that M&A activity in the sector will continue.
Cyber Algorithms develops technology that uses behavior analytics to help security operations teams detect cyberattacks and data intrusions early. The target was formed in 2015 out of Mach37 Cybersecurity Accelerator, an incubator for startups in the sector, before receiving an early investment from Insight Venture Partners. Cyber Algorithms, based in Virginia, offers full-service network security monitoring to small and medium-sized businesses.
Thycotic, headquartered in Washington, DC, is an information technology security company founded in 1996 that offers preventive services to fight network attacks. The buyer offers password protection, security for access endpoints and group management for more than 7,500 organizations such as: Saab Defense and Security, BankUnited (NYSE: BKU), Duquesne University, University of Central Florida, University of San Diego, San Francisco Ballet, and Blue Cross Blue Shield. The deal will allow Thycotic to focus on detecting cyberattacks earlier.
Growing cybersecurity threats have boosted interest in M&A for companies that provide protection through software and monitoring, especially as hackers have continued to invade government agencies, presidential campaigns and large corporations. In 2016, Internet tech provider Dyn caused outages for a string of popular websites like Amazon, Twitter and Netlix. Recent cybersecurity deals include: TPG’s agreement to add Intel Corp.’s computer security unit for $4.2 billion; Accenture’s (NYSE:CAN) purchase of Redcore; Thoma Bravo’s deal for Bomgar; and Vista Equity Partners’ acquisition of Regulatory DataCorp Inc.