AE Industrial Partners: Acquisition Play with Paragon
Deal News | Jan 06, 2025 | EIN
In December 2024, 37 significant cybersecurity M&A deals were announced, illustrating a busy period in this sector after a relatively quiet first half of the year according to data from SecurityWeek. Noteworthy transactions include AE Industrial Partners' acquisition of Israeli spyware company Paragon for up to $900 million and Arctic Wolf's purchase of Cylance from BlackBerry for $160 million, along with shares. Cisco plans to enhance its Splunk product capabilities by acquiring SnapAttack, and Citrix advances in zero trust security with acquisitions of DeviceTrust and Strong Network. Meanwhile, Chainalysis expanded into blockchain security by acquiring Hexagate for $60 million, and Fortinet boosted its cloud security solutions by purchasing Perception Point. Additionally, Gen Digital, known for its antivirus brands, acquired financial technology firm MoneyLion for $1 billion, broadening its consumer services. The Pango Group and Total Security merger indicates a dynamic shift within the industry, valued at $1.7 billion, with future endeavors under the new brand, Point Wild. Other deals include OPSWAT acquiring Fend, further acquisitions by companies such as Chainalysis, Fortinet, Gen Digital, and others, all contribute to a significant reshuffling and strategic evolution in the cybersecurity ecosystem.
Sectors
- Cybersecurity
- Technology
- Private Equity & Venture Capital
Geography
- United States – Many acquiring and target companies, such as AE Industrial Partners and Cisco, are based in the US, indicating significant M&A activity originating from this region.
- Israel – The acquisitions of Israeli cybersecurity firms Paragon and Hexagate spotlight Israel's robust tech industry and its influence on cybersecurity advancements.
Industry
- Cybersecurity – Cybersecurity is central to this article as it discusses mergers and acquisitions within firms that operate in this field, notably enhancing capabilities and market positions.
- Technology – The article encompasses technological advancements and strategic acquisitions in the broader tech landscape, evident in enhancements to security and data management platforms.
- Private Equity & Venture Capital – The participation of private equity firms in these acquisitions, such as AE Industrial Partners, highlights this sector's involvement in financing and strategic business restructuring.
Financials
- $500 million – Reported acquisition price for Paragon with a possible value up to $900 million.
- $160 million + 5.5 million shares – Terms under which Arctic Wolf acquired Cylance from BlackBerry.
- $1 billion – Acquisition price for MoneyLion by Gen Digital.
- $60 million – Estimated acquisition price for Hexagate by Chainalysis.
- $1.7 billion – Enterprise value of the merger between Pango Group and Total Security.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AE Industrial Partners | Acquiring Company | Companies | US-based private equity firm focused on aerospace, defense, power generation, and specialty industrial markets, now extending into cybersecurity. |
| Paragon | Target Company | Companies | An Israeli spyware firm that enhances AE Industrial Partners' cybersecurity portfolio through its acquisition. |
| Arctic Wolf | Acquiring Company | Companies | A security operations firm acquiring Cylance to expand its endpoint security offerings. |
| Cylance | Target Company | Companies | Previously owned by BlackBerry, delivers endpoint security technology. |
| BlackBerry | Seller | Companies | A specialized software and IoT solutions provider that sold Cylance to Arctic Wolf. |
| Cisco | Acquiring Company | Companies | A leading global technology conglomerate acquiring SnapAttack to bolster its Splunk security products. |
| SnapAttack | Target Company | Companies | Specializes in threat detection and defense technologies. |