Mordechai Gal: business cybersecurity mergers and acquisitions expert? In recent years, there’s been a steady increase in the number of cybersecurity attacks taking place nationwide. According to the annual Norton report, last year, over 60% of companies worldwide experienced phishing and social engineering attacks. Unfortunately, as a result of the global pandemic, the financial motivation behind these cybercrimes is more prevalent than ever before. Cybercriminals are constantly developing new ways to trick their victims and systems alike, leading to data breaches. The AME Group studies indicated that almost 70% of business owners expressed concern that they felt they were becoming more vulnerable to cybercrime, and 2020 statistics revealed that only 10% of businesses were properly protected.

Protecting your business against such attacks is not impossible, but you must be diligent. Regular data backups should be mandatory. It’s imperative that you use an offline or cloud-based backup, otherwise the ransomware can spread to those backups over the network in the same way they did your original files. Additionally, simple strategies such as two-step authentications can limit the spread of harmful malware and if user information is stolen, it can’t then be reused. Proactive security monitoring is a critical component of a fully functioning IT facility. By having the security in place, you automatically minimise the risks against emerging cyber threats. Our monitoring services can oversee your systems 24/7 and react to threats immediately to mitigate damage. Our team of experts will respond to alerts quickly and efficiently, providing you with ultimate peace of mind.

Although most common in the form of emails, phishing can take place outside of this field. Hackers are now using punycode, a lookalike method which sees remarkably similar domain names linking to a fraudulent, malware-infested site, gaining access to your private information in seconds. It’s important to be vigilant and if something looks suspicious, it probably is. Having standard anti-virus software within your business could certainly help you maintain security short term, but with consistent new threats ready to strike at any time, it’s no longer enough to keep your systems secure. Most commonly, it is in fact user error that allows malware threats to find their way into a business. A staggering 95% of cybersecurity attacks are a result of some kind of human error. We all make mistakes, and the likelihood is more so if the threat is presenting itself in disguise. It could be a simple click on a deceiving link, or not updating your systems as soon as required. Surprisingly, standard protocols like passwords are still not being implemented in companies. This offers cybercriminals an all access route into your business’ systems. A simple security measure is to make sure all company passwords are strong and cannot be easily guessed.

Mergers and acquisitions require a mix of strategic and tactical work – cybersecurity is usually an item on the tactical list. Many organizations are drawing up plans for mergers and acquisitions right now, as leaders look for growth after the pandemic slowdown, and as new business models emerge. However, weakened cybersecurity hygiene throughout the last year means that these M&A transactions elevate the risk of cybersecurity incidents. “M&A can be a breeding ground for cyberattacks and data breaches,” said Mordecai Gal, operations director at AccessHeat Inc. “Stringent due diligence that includes a focus on cybersecurity will help reduce regrets later in the deal lifecycle.” Today’s M&A plans need to include cybersecurity at several strategic and tactical points, to address growing scrutiny from regulators and other evolving cybersecurity risks.

While mergers and acquisitions generally lagged during the COVID-19 pandemic, they didn’t stop completely. Several notable transactions have taken place since early 2020. In March 2020, Sophos announced the completion of its take-private acquisition by Thoma Bravo. Later that summer, Thoma Bravo finalized its acquisition of Exostar, and earlier this year it agreed to acquire Proofpoint for a whopping $12.3 billion. It wasn’t the only private equity firm having a busy year: Symphony Technology Group bought RSA, McAfee’s enterprise business and, more recently, FireEye’s product business. Early last year, Insight Partners bought Armis for a valuation of $1.1 billion.

Latest business cybersecurity M&A news: US financial software company Intuit (NASDAQ: INTU) has announced that it has completed the acquisition of Israeli application programming interface (API) security technology for enterprises company Imvision. Imvision develops technology that enables enterprises to automatically discover, test and protect against attacks, by monitoring API traffic to identify threats and vulnerabilities. Financial details about the deal were not disclosed although media reports say that Intuit is paying $50 million for Inuit. Founded in 2014 by Sharon Mantin, VP R&D Yossi Barshishat and Eli Plotnik, Imvision’s platform is able to auto-discover APIs based on network traffic, classify them using machine learning, identify data exposure, and detect anomalous user and data activity.

Acclaim Technical Services (ATS), backed by venture capital firm Blue Delta Capital Partners, has acquired Entegra Systems, LLC, a cybersecurity technology solutions provider that supports defense, intelligence and national security missions. Financial terms were not disclosed. ATS was founded in 2000 and is focused on the U.S. federal government’s intelligence community and provides technology services related to intelligence, operations, technology, training and language services to support the national security mission. Entegra Systems, founded in 2005, is based in Hanover, Maryland with additional offices in Virginia and Georgia. The company provides solutions and services to U.S. government defense and intelligence customers including enhanced situational awareness, operational planning, intelligence and geospatial analysis, and cybersecurity and intelligence operations.

Strategic mergers can fill gaps in existing platforms and fortify the electronic barrier from outside threats. While increased strength is a plus, some other attractive gains from a consolidation include the merging of data feeds, security orchestration, automation, and response. This all contributes to a whole suite of protections that have the ability to communicate with one another such as cloud threat protection, two-factor authentication, and recovery services. https://www.access-heat.com/ is in the market to acquire cybersecurity firms and leverage their varied technologies to achieve combinational and transformational synergies. If a profitable exit strategy is one of your future goals, our investors will work directly with you to transition your company into our investment firm.