In an increasingly digitized world, cybersecurity remains a primary concern, leading to significant merger and acquisition (M&A) activity within the sector. European cybersecurity companies continue to attract significant investment, and several high-profile deals well define the state of the sector in 2024. Our expert M&A advisors in the technology sector have analyzed the five largest cybersecurity transactions in Europe last year, focusing on their strategic importance, the acquiring entities and the underlying business rationale for each acquisition.

Thoma Bravo acquires Darktrace for $5.32 billion

On April 26, 2024, leading private equity firm Thoma Bravo announced the acquisition of Darktrace, a leading UK-based cybersecurity company known for pioneering artificial intelligence (AI) solutions designed to identify, prevent and neutralize insider threats. This acquisition, valued at a staggering $5.32 billion, marked the largest cybersecurity deal of the year in Europe.

Darktrace, founded in 2013, quickly established itself as an innovative force in cybersecurity, leveraging AI to continuously learn and adapt to evolving cyber threats. Its unique ability to detect anomalies in real time has made it the partner of choice for businesses and governments around the world.

Thoma Bravo, specializing in software and technology investments, identified Darktrace's potential to significantly scale and lead the cybersecurity market globally. Thoma Bravo's acquisition strategy is clearly aimed at expanding its portfolio with leading-edge cybersecurity solutions, further strengthening its position in technology investments and unlocking substantial value by enhancing Darktrace's market presence and operational capabilities.

We discussed the strategic reasons behind this acquisition a few weeks ago in an article about other AI sector transactions, Big Data, Analytics, and Machine Learning.

EasyVista's acquisition of OTRS

EasyVista, known for its optimized IT service management (ITSM) software, acquired OTRS, a provider of open source help desk solutions, for $24.5 million on Nov. 22. Germany-based OTRS offers extensive open source ITSM solutions designed to optimize customer service operations and internal IT processes.

EasyVista's strategic rationale for acquiring OTRS lies in expanding its product capabilities and reaching a broader market segment. By integrating the open source strength of OTRS, EasyVista aims to improve flexibility, increase customization opportunities for customers and leverage OTRS' strong developer community. This move is strategically significant as it allows EasyVista to position itself as a leading ITSM platform with extensive open source integration capabilities, thus appealing to companies looking for adaptable and cost-effective solutions.

Pacific Technology invests $15.32 million to acquire TİTRA

On February 28, 2024 Pacific Technology acquired TİTRA, a fast-growing Turkish company specializing in big data, cybersecurity, artificial intelligence and unmanned systems, for approximately $15.32 million. Pacific Technology, a research and development-focused company that provides software, hardware, IT infrastructure and cybersecurity services, identified the acquisition as a strategic opportunity to strengthen its technology capabilities and regional presence.

TİTRA's cutting-edge solutions in cybersecurity and AI have demonstrated significant potential in various industries, including defense, telecommunications and infrastructure protection. With the acquisition of TİTRA, Pacific Technology strengthens its capabilities in big data analytics and cybersecurity solutions. The deal will enhance Pacific Technology's R&D prowess and competitiveness in the cybersecurity market, reflecting a broader industry trend toward technology integration and consolidation.

Nekkar ASA acquires GlobeTech for US$11.37 million

Nekkar ASA, a Norwegian industrial innovation company leveraging digitization, electrification and smart design, acquired GlobeTech on July 3, 2024, in a deal valued at $11.37 million. GlobeTech specializes in cybersecurity and information and communication technologies, with specific expertise in the maritime sector, a crucial industry in Norway and internationally.

The growing vulnerability of the maritime industry to cyber threats and the strict compliance requirements have amplified the demand for cybersecurity solutions specifically tailored to maritime operations. With the integration of GlobeTech, Nekkar ASA strategically expands its portfolio of digital solutions, enabling it to provide comprehensive cybersecurity offerings alongside its industrial innovations. This acquisition highlights Nekkar's strategic commitment to ensuring security and operational reliability in digital maritime infrastructure, enhancing its position in both domestic and global markets.

The acquisition of Connecting by Intred

TheOn January 29, 2024 Intred, a notable Italian telecommunications company that operates an extensive fiber optic network, acquired Connecting Italia for $3.9 million. Connecting Italia provides a variety of services, including telephony, IT infrastructure management, cybersecurity, digital marketing and web solutions. This transaction strategically positions Intred to expand its cybersecurity and IT infrastructure services, effectively complementing its core telecommunications business. acquisition of Connecting by Intred

Connecting Italia's established presence in IT services, particularly cybersecurity, offers Intred significant cross-selling opportunities. The acquisition enables Intred to offer an integrated service package to customers seeking reliable connectivity coupled with robust cybersecurity protection. This comprehensive approach directly addresses the growing demand among small and medium-sized enterprises (SMEs) throughout Italy, positioning Intred competitively in an evolving market.

Trends driving mergers and acquisitions in cybersecurity

The European outlook for cybersecurity M&A during 2024 illustrates several strategic trends in the sector:

• AI and Machine Learning Integration: the integration of AI-powered cybersecurity solutions highlights the industry’s focus on proactive threat detection and response mechanisms.
• Sector-Specific Cybersecurity Solutions: the selective acquisition of companies like GlobeTech highlights the growing
• Open-Source Solutions and Flexibility: EasyVista’s acquisition of OTRS signifies the industry's shift toward open-source platforms, offering greater customization and cost-effectiveness that appeal to a broader range of companies.
• Regional and Technological Expansion: the operations of Pacific Technology and Intred emphasize strategic growth through regional market penetration and technological enhancements, aiming to consolidate market presence and competitive advantage.

The top five cybersecurity transactions in Europe carried out in 2024 reflect the industry's rapid growth, technological innovation, and strategic consolidation efforts. With increasingly sophisticated cybersecurity threats, organizations are being forced to invest aggressively in advanced and integrated

As we move forward, cybersecurity M&A activity is likely to continue to increase, driven by escalating cyber threats, technological advances and the ongoing digital transformation of companies in Europe and around the world.

At Baker Tilly's tech-sector M&A advisory division, we carry out growth consulting to maximize your company’s value. Get in touch with our mergers and acquisitions specialists to increase your business’s appeal and achieve a successful sale.