Posted by Hyderabad: The current economic uncertainty, volatile market conditions and recession fears have slowed down the Cybersecurity M&A deals in the Asia-Pacific (APAC) region last year.
In terms of volumes, Cybersecurity M&A deals in APAC fell 12% in 2022 compared to 2021, according to GlobalData, a leading data and analytics company.
A total of 44 mergers and acquisitions (M&A) deals were announced in the cybersecurity space in APAC during 2022 compared to 50 in 2021, as per the analysis of GlobalData’s Financial Deals Database.
“For the past few years, it has been a fluctuating trend for M&A deal activity in the cybersecurity space of the APAC region with 2020 achieving a new high followed by decline for two consecutive years,” said Aurojyoti Bose, GlobalData’s Lead Analyst.
“The significant increase in the volume of deals for 2020 can be attributed to the sudden shift to remote work and increased reliance on digital infrastructure, which in turn necessitated the need for cybersecurity solutions,” added Bose.
Due to recession fears, Bose pointed out that acquirers seem to have become cautious and are forced to revisit their M&A strategies in 2022.
“GlobalData also found some serial acquirers, which undertook multiple acquisitions in 2020 and 2021, slowing down on their M&A activity in 2022.” added Bose.
For instance, Tesserent Limited, which acquired four cybersecurity companies in 2020 and two cybersecurity companies in 2021, did not undertake any M&A in 2022.