Cybersecurity

Cisco’s $28 bln spelunking yields dicey deal

21 Sep 2023

Buying data and security outfit Splunk could increase recurring revenue at the $215 bln networking giant. Cisco is also paying a low multiple. But the two don’t have much overlap, and Splunk’s cloud-based business needs work. Cisco bears execution risk, which hinges on growth.

France wins more than Kretinsky in Atos breakup

1 Aug 2023

Billionaire Daniel Kretinsky will buy the IT group’s older assets for 2 bln euros including debt. Paris will be pleased that the other, sexier cybersecurity division stays French. Meanwhile the Czech tycoon gets the ailing unit with little relevance to his other recent purchases.

Capital Calls: Biotech alarm, Spotify’s tightrope

25 Jul 2023

Concise views on global finance: Pharma supplier Danaher’s reduced forecast contrasts biotech doldrums against broader market exuberance, in a warning sign for investors; the Swedish music streamer is caught between margin-hungry investors and music labels.

Markets are far from pricing in peace

26 Jun 2023

Germany’s Rheinmetall and other defence shares fell after an aborted Russian mutiny. Domestic instability may shorten the Ukraine war, curtailing lucrative contracts. Yet chaos in Moscow, Western tensions with China and rising cyberthreats will keep the world amply unsafe.

EU phase-out of Huawei, ZTE is tricky but vital

20 Jun 2023

Commissioner Thierry Breton wants EU countries to end use of Chinese telecoms gear on national security grounds. Some states have already cut Huawei and ZTE from 5G networks. The EU survived decoupling from Russian energy, and it can manage this. But it requires German buy-in.

Cyberattack risks rise up company agendas

18 Apr 2023

Digital breaches and data theft were up 40% in 2022. As firms expand their digital network, the weaknesses criminals exploit will also grow, DXC Technology’s security expert Mark Hughes told The Exchange podcast. Defending against attacks will inevitably cost more.

Israel hits tech sector cash cow while it’s down

3 Apr 2023

Prime Minister Benjamin Netanyahu has delayed a controversial plan giving the state power to override court decisions. Foreign investors in Israel’s key tech sector, which accounts for half its exports, were already getting stingier. They’ll get even more so if the idea returns.

Cyber-risk gold standard is CEOs’ next headache

3 Mar 2023

With hacking on the rise, US regulators are set to force listed groups to swiftly reveal IT breaches, and how to fend off future ones. That will likely prompt laggard Europe to follow suit. Investors could start applying valuation discounts to those lacking apt cyber defences.

TCI’s Airbus fury may have collateral benefit

22 Feb 2023

Hedgie Chris Hohn says the plane maker’s plan to buy a 30% stake in Atos’s cyber arm will destroy value. He’s probably right, but private investors take a back seat in defence deals, where governments call the shots. His salvo might however help Airbus drive a harder bargain.

New threats will corrode infrastructure M&A

30 Dec 2022

Blasts that damaged Baltic pipelines in September alerted investors to the physical risks to energy networks from geopolitics. Add growing cyber concerns and the cost of insurance is set to rise. As the appeal of formerly quasi risk-free bets dims, states will surely step in.

New deals put equity back into private equity

12 Oct 2022

Vista unveiled a $4.6 bln takeover of KnowBe4 while Thoma Bravo is paying $2.3 bln for ForgeRock. There’s precious little detail about the financing for either security software developer, but both transactions offer hints about how buyout firms will navigate tight debt markets.

Wall Street sends regulators a poop emoji

28 Sep 2022

Eleven firms have paid $1.8 billion in fines for employees’ unapproved use of platforms like WhatsApp. The rules may have been hard to enforce. But the response — to collectively flout them at every level — is alarming. Meanwhile the mass fine looks essentially toothless.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.

Darktrace buyout offers road to debug governance

16 Aug 2022

Thoma Bravo is mulling an offer for the $4 bln cyber firm. Close links to investor Mike Lynch, who faces U.S. fraud charges, may explain its discount to peers. Given that a new owner could hike the valuation by untangling those links, Darktrace owners should demand more upfront.

Thoma Bravo pulls out its inflation-era playbook

3 Aug 2022

The private equity firm’s purchase of security software maker Ping Identity for $2.4 bln fits the thesis behind many of Thoma Bravo’s recent deals: Companies that are expanding can still use stern cost discipline. The question is whether cuts come at the expense of future growth.

Capital Calls: UK antitrust watchdog/M&A

3 Aug 2022

Concise views on global finance: The Competition and Markets Authority’s change of heart over NortonLifeLock’s 6.2 bln pound takeover of UK group Avast was an opportunity for bold investors.

Hackers turn crypto’s strength into Achilles heel

30 Mar 2022

Attackers stole $540 mln from a blockchain linked to an online game. Theft is growing as developers roll out untested new blockchain products with shaky security. So-called decentralised finance makes it easy to create new crypto services, but criminals are mopping up the spoils.

Google deal is a step on long road to cloud parity

8 Mar 2022

The Alphabet unit is acquiring cybersecurity bona fides with its $5 bln purchase of Mandiant. This will bolster its cloud platform but Microsoft, a leader in the field, is already ahead in security and has other potential acquisition targets. Catching up will require more work.

West’s best cyber move is to stick to defence

3 Mar 2022

Malware attacks on Ukrainian banks and state agencies make better protection for governments and companies essential. Western nations may consider retaliation. Given the shortage of cyber experts and the risk of badly targeted strikes, they’d be better off focusing on defence.

Hot war may get hotter through cyber battles

22 Feb 2022

Harsh Russian sanctions for invading Ukraine could cause collateral damage. As payback, Moscow may hack American energy firms and banks. U.S. agencies are shoring up cyber capabilities. But hackers only need to be lucky once, and retaliation leaves companies in the crossfire.