Acquisition Tag

Acquisitions in the Cybersecurity Sector in 2024

The following is a summary of mergers and acquisitions transactions in the cybersecurity sector in 2024.  We will update this post every two weeks as we work with more clients and learn of other deals in the sector.

The cybersecurity sector got off to a strong start in 2024, despite a drop in venture capital funding for companies in the sector in 2023.

As a result, valuations for small and medium-sized privately owned cybersecurity firms are close to their all-time highs and significantly higher than valuations for traditional businesses, including fast-growing SaaS businesses. The average small and medium-sized cyber security company is valued at 8x trailing twelve-month annual revenue.

For more information on how to value a small to medium size, privately owned cybersecurity firm, please read our article How to Value Your Cybersecurity Firm in 2025.

Who’s Driving M&A Activity in the Cybersecurity Sector

Based on the list below of mergers and acquisitions in the cybersecurity sector in 2024, the most active types of buyers are as follows:

● Cybersecurity Companies: The most active buyers are other cybersecurity companies seeking to expand their services, enhance technology, and increase market reach. There were at least 47 acquisitions by companies that are primarily focused on cybersecurity. Examples include Fortinet, CrowdStrike, CyberArk, Zscaler, Mimecast, and others.

● Private Equity Firms: These firms are making significant investments in the cybersecurity sector, often looking to build their portfolios and profit from the growing market. There were at least 11 acquisitions by private equity firms, including AE Industrial Partners, Leeds Equity Partners, Thoma Bravo, EQT, Haveli Investments, Permira, Accel-KKR, Clearlake/Francisco Partners, Hg, and others.

● Technology Companies: Many technology companies are acquiring cybersecurity firms to integrate security solutions into their existing products and services. There were at least 10 acquisitions or potential acquisitions by technology companies. Examples include Google, HPE, Cisco, OpenText, Akamai, Cloudflare, SonicWall, Visa, and Mastercard.

● Managed Services Providers: These firms are acquiring cybersecurity companies to enhance their security offerings and provide comprehensive solutions to their clients. There were at least 4 acquisitions by managed services providers, including Integrity360, Lumifi, N-able, and Magna5.

● Telecommunications Companies: These companies are expanding their services and capabilities by acquiring cybersecurity firms. There was at least 1 acquisition in this category, with TELUS acquiring Vumetric Cybersecurity.

● Other Companies: Companies across various industries, such as financial services and healthcare, are acquiring cybersecurity firms to integrate these services into their businesses. There were at least 7 acquisitions by companies in this category including Health Catalyst, Experian, PDI Technologies, Mitsui, Parsons, and Orange.

It’s worth noting that some companies might fit into multiple categories. For instance, some technology companies also offer managed services. Also, the exact number of transactions may vary depending on how the data is categorized.

This list is not exhaustive, as many smaller transactions are not publicly announced. The data only represents the deals that we learned about through our network or were directly involved in.

Acquisitions in the Cybersecurity Sector in 2024

Below is a summary of the mergers and acquisition transactions in the Cybersecurity Sector so far in 2024.  This is not an exhaustive list, as many smaller transactions are never announced.  This list only represents the deals we have learned about through our network or have been directly involved in.  I’ll do my best to update the list every two weeks.

Trends in Cybersercurity M&A

Based on the provided data, several trends are driving acquisitions in the cybersecurity sector. These trends can be summarized as follows:

● Expansion of Service Offerings and Capabilities: A primary driver is the desire of cybersecurity companies to expand their service portfolios and technological capabilities. Many cybersecurity firms are acquiring companies with specialized expertise or complementary technologies to offer more comprehensive security solutions. This is evidenced by the numerous acquisitions of companies that provide services like cloud security, AI-powered security, API security, and threat intelligence. For example, Fortinet acquired Perception Point to enhance its email security offerings, and CrowdStrike acquired Adaptive Shield to provide unified protection against identity-based attacks.

● Market Consolidation and Increased Market Reach: Mergers and acquisitions are also being used to achieve market consolidation and expand market presence. Established companies are acquiring smaller firms to increase their customer base, penetrate new markets, and consolidate their positions in the industry. This is seen in acquisitions such as Integrity360 acquiring Adsigo to expand its European presence, and Lumifi’s acquisitions to expand its healthcare cybersecurity services.

● Integration of Advanced Technologies: The need to integrate advanced technologies, such as AI, is another key trend. Several acquisitions involve companies specializing in AI-driven security solutions, such as Proofpoint acquiring Normalyze, a data security posture management (DSPM) leader, and Cisco acquiring Robust Intelligence for enhanced AI security capabilities. This reflects the growing importance of AI in combating increasingly sophisticated cyber threats.

● Private Equity Investment: Private equity firms are playing a significant role, actively acquiring cybersecurity companies to build their portfolios and capitalize on the growing cybersecurity market. These firms often invest in companies with strong growth potential and innovative technologies, aiming for profitable exits in the future. Examples include Thoma Bravo’s acquisition of Darktrace and EQT’s acquisition of Acronis.

● Demand for Managed Security Services: The rise in demand for managed security services is driving acquisitions in the sector. Many companies are seeking comprehensive security solutions without having to manage them internally. Managed services providers are acquiring cybersecurity firms to enhance their offerings and cater to this growing demand. For example, N-able acquired Adlumin to expand its managed security services.

● Integration of Security into Broader Tech Platforms: Technology companies are acquiring cybersecurity firms to integrate security solutions directly into their platforms and services. This is apparent in acquisitions such as HPE’s purchase of Juniper Networks to enhance networking and security and Akamai’s acquisition of Noname Security to improve API security. This trend shows a recognition that security is a critical component of all technology offerings.

● Cross-Industry Integration of Cybersecurity: Companies from various industries are integrating cybersecurity into their business. Firms across industries, such as financial services, healthcare, and others, are acquiring cybersecurity firms to enhance their businesses. This is seen in acquisitions such as Experian buying ClearSale and Health Catalyst acquiring Intraprise Health.

In summary, the cybersecurity sector’s acquisition trends are being propelled by the need for broader service offerings, market consolidation, the integration of advanced technologies like AI, the strategic investments of private equity firms, the need for managed security services, the integration of security into broader tech platforms, and the increased need for cybersecurity across all sectors. These trends highlight the dynamic nature of the cybersecurity industry and the increasing importance of cybersecurity in the modern business landscape

We will update this post every two weeks as we learn about other transactions and close more deals in the cybersecurity sector.

Read our previous article for information about How to Value Your Cybersecurity Firm in 2025.

About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, education industry entrepreneur, and former mergers and acquisitions attorney.

For the last 25 years, Rich and his team have been providing boutique investment banking services to middle-market companies in a wide range of industries.

Rich also founded a successful training and certification company called the Exit Planning Institute, which he sold to a private equity group in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to software, SaaS, Edtech, and cybersecurity companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging from less than one million to more than eighty million dollars in value.

If you own a cybersecurity-related business and are interested in exploring your options, I would welcome an opportunity to speak with you. Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.

Coding Bootcamp Acquisitions: 2014 to 2022

This article provides an overview of the publicly announced tech and coding bootcamp acquisitions since 2014.

This article includes the following sections

• Introduction
• Understanding the Bootcamp Market
• Valuing Coding & Cybersecurity Bootcamps
• 2022 Bootcamp Acquisitions
• 2021 Bootcamp Acquisitions
• 2020 Bootcamp Acquisitions
• Summary of Tech Bootcamp Acquisitions
• Notable Coding & Cybersecurity Bootcamp Acquisitions

Introduction

Since the first coding bootcamp acquisition in June 2014, we’ve seen dozens of coding bootcamps get acquired by a wide range of companies, from for-profit education companies (like Capella Education) to co-working companies (like WeWork) and other coding bootcamps (like Thinkful + Bloc)!

With rapid market growth in the bootcamp industry, other types of for-profit education companies are taking note, including traditional vocational schools and 4-year colleges and universities.

Many of these coding bootcamp acquisitions should come as no surprise. Some have been very successful, with the programs going on to significantly increase the number of physical locations and online course offerings.

In addition, as coding bootcamps mature, we are beginning to see bootcamps get acquired by well-known companies for increasingly large sums.  For example, General Assembly was acquired for $413 million, and Trilogy Education for $750 million!

As education industry specialists, Jackim Woods & Co maintains a list of bootcamps acquisitions to track who’s buying whom and how bootcamps and how edtech companies are valued.  As we were compiling the 2022 transactions, it occurred to us that others might be interested in this information as well, so we thought we’d share it with you.  We plan to update this list each year with publicly announced deals involving coding and cybersecurity bootcamps.

Understanding the Coding Bootcamp Market

If you are interested in learning more about the $2.3 billion tech bootcamp sector, please see our article Understanding the Tech Bootcamp Market.

Valuing Tech & Coding Bootcamps

If you’re interested in understanding how bootcamps are valued, please see our article How to Value a Bootcamp – Example and Multiples.

You might also enjoy reading our related article, How to Value an EdTech Company – Multiples & Example.

2022 Coding Bootcamp Acquisitions

2022 was a big year for tech boot camp dealmaking.

• 2022 started off with a bang when Skillsoft, an online course provider, acquired Codecademy in January for $525M.
• Then, in February, Centage Group acquired InfoSec, the leading provider of tech-related certification prep courses, for $190 million.
• The year also ended with two notable transactions when Digital Intelligence Systems acquired Grand Circus for an undisclosed amount, and Simplilearn (a Blackstone Group-backed company) acquired Fullstack Academy.  Fullstack Academy was estimated to be valued at $55 million.

2021 Coding Bootcamp Acquisitions

• ThriveDX (HackerU) acquired Cybint for a reported $50 million.
• Brainstation acquired Wyncode in January 2021
• SNHU acquired Kenzie Academy in March 2021.

2020 Coding Bootcamp Acquisitions 

• K12, the publicly traded online K-12 school and education management provider, paid $165 million in cash to buy Denver-based coding bootcamp Galvanize. For K12, the deal means adding more coding curricula for students in its Destinations Career Academies, which offers high school and career training program hybrids. For Galvanize—which is also Hack Reactor—the deal provides additional funding to grow its corporate learning business, add more physical locations, and increase its services to the military.
• K-12 acquired Tech Elevator for $24M
• Carrick Partners acquired Flatiron School from WeWork for an undisclosed amount.

Summary of Coding Bootcamp Acquisitions

The following is a summary of the publicly announced acquisitions of tech-related bootcamps since 2014.  Keep in mind that only large transactions are typically announced to the public.  We estimate that 75% of the bootcamp transactions each year are small and are not announced to the public.

 Notable Coding Bootcamp Acquisitions

The first reported acquisition of a coding bootcamp was Kaplan Test Prep’s purchase of Dev Bootcamp in June 2014. Although this was the first acquisition in the coding bootcamp industry, it wasn’t Kaplan’s first foray into coding bootcamps.  Kaplan launched its data science bootcamp Metis in early 2014. In 2017 Kaplan integrated Dev Bootcamp into Metis and retired the Dev Bootcamp brand.

Galvanize acquired Zipfian Academy in November 2014. Zipfian Academy was one of the first coding and networking bootcamps in the US. After one year of success, it was acquired by the Denver-based education & coworking powerhouse Galvanize.

ReactorCore acquired MakerSquare in January 2015. After ReactorCore was acquired by MakerSquare, ReactorCore’s first major move was to acquire Chicago-based mobile bootcamp Mobile Makers in September 2015.

The Iron Yard acquired Apollo Education as a “strategic investor” in July 2015. As of October 13, 2017, The Iron Yard is no longer operating.

Strategic Education, Inc. (SEI), the publicly traded holding company for Strayer Education, Inc., acquired New York Code & Design Academy in January 2016. New York Code & Design Academy is no longer operated as a separate brand.

Capella Education acquired Hackbright Academy in April 2016 and shortly afterward acquired DevMountain. Capella Education was later acquired by SEI.

WeWork acquired Flatiron School in October 2017, then in May 2018, WeWork also acquired MissionU.

A few months later, Flatiron School (now a part of WeWork) acquired the UX design bootcamp, Designation, and the cybersecurity bootcamp, SecureSet Academy.

After growing too quickly and facing financial challenges, WeWork sold off most of its assets, including selling Flatiron School to Carrick Partners in June 2020.

In a classic roll-up strategy, Thinkful began acquiring several of its smaller competitors to boost its value.  Starting in 2017, Thinkful acquired Viking Code School and The Odin Project. Then, in April 2018, they acquired Bloc.  When Thinkful reached its desired valuation, it sold to Chegg for $100 million.

Adecco, the large tech staffing company, acquired General Assembly in April 2018 for $413 million. According to Axios, General Assembly had been valued at $440 million. Between 2011-2015, General Assembly raised approximately $120 million in VC funding and earned $100 million in revenue in 2017.  That was the largest bootcamp deal at that time.

However, two years later, 2U acquired Trilogy Education in April 2019 for a record-breaking $750 million!

In early 2022, Centage Group acquired InfoSec, the leading provider of tech-related certification prep courses, for $179 million.

Toward the end of 2022, IT staffing provider Digital Intelligence Systems LLC (Disys) acquired Grand Circus, a virtual coding bootcamp provider that also connects talent to employers.

Outlook for Coding Bootcamp Acquisitions

Many industry analysts are pessimistic about the future of coding bootcamps because of the rapid advances in artificial intelligence and the ability of AI to write relatively sophisticated code.  We do not share that pessimism.  AI will still need talented coders to break projects down into the components that an AI can handle, then direct and instruct the AI about the project parameters, and finally review the AI’s work product and make necessary tweaks and adjustments.  So rather than reducing the demand for programmers, we expect the nature of the course to change and evolve as the technology sector changes and evolves.

About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, educational industry entrepreneur, and former mergers and acquisitions attorney.

For the last 25 years, Rich has been providing boutique investment banking services to middle-market companies in the education sector.

Rich also founded a successful training and certification company called the Exit Planning Institute which he sold to a private equity group in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned schools, colleges, and EdTech companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging in value from less than one million to more than eighty million dollars.

If you own a tech boot camp or another education-related business and would like to explore your options, I would welcome an opportunity to speak with you. Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.