"New Year's Surprise: Cybersecurity M&A, Funding Activity Snowballs in Q4"

After a decline in the third quarter, Mergers and Acquisitions (M&A) activity and investments in cybersecurity picked up again in the fourth quarter. The sector is on track to finish the year in better form than many had expected, with overall financing exceeding the pace of 2020 despite a decline compared to 2021. Eric McAlpine, managing partner at Momentum Cyber, predicts that M&A activity in cybersecurity will maintain its momentum in 2023 as startups face difficulties in raising additional capital, run out of money, or reduce their valuations. According to Richard Caralli, senior cybersecurity advisor at Axio, security teams will need to be prepared to provide a measurable return on investments and achieve more with less in instances when their employers may be looking to reduce security spending. This is in expectation of a slowdown in core spending on technology acquisition in 2023, which might lead to a contraction in certain cybersecurity sectors as well as an increase in possible consolidation and acquisition activities. In addition, the fact that CISOs and those responsible for purchasing decisions are increasingly seeking more integrated platforms could be a factor in 2023 cybersecurity funding activities. This article continues to discuss predictions for cybersecurity M&A activity in 2023 and the impact of industry activity on enterprise security teams. 

Dark Reading reports "New Year's Surprise: Cybersecurity M&A, Funding Activity Snowballs in Q4"