A Bloomberg Government Study, “Potential Targets? Companies in Cloud and Mobile Security Attract Attention,” (subscription required) by defense analyst Sopen Shah and federal business intelligence analyst Jason Wilson, examines companies with specialized cybersecurity capabilities.
Federal contractors seeking to grow through acquisitions or gain capabilities to boost their government business have been interested in the cybersecurity market during the past few years.
An analysis of 66 recent cybersecurity deals showed federal contractors are acquiring companies to gain or bolster capabilities such as continuous monitoring of networks, secure cloud computing and mobile application security. The study finds:
- Cloud and mobile security represent potential growth pockets within the broader federal cybersecurity market. Storage and software capabilities and fast revenue growth have driven higher-than-average valuations of cybersecurity companies.
- Prime vendors used acquisition in 2011 and the first four months of 2012 to enter the market or expand existing portfolios in cybersecurity, in part due to expectations that the market may survive federal budget cuts.
This Bloomberg Government Study examines the types of cybersecurity companies that may be acquisition targets for large prime contractors and other companies. It identifies 11 companies frequently mentioned in analyst or industry research reports that possess capabilities required by new policies or have characteristics similar to previous target companies.
This study builds on research from “Trends in the $1.8 Billion Market for Defense Cybersecurity,” published May 23, and “Trends in the $1.3 Billion Market for Cybersecurity in Civilian Agencies,” published June 27.
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