|
 |
 |
 |
|
October 2006 |
 |
Updata Capital® IT Security Mergers & Acquisitions News |
|
|
|
 |
State of the IT Security Market |
|
In the past 12 months
through October 13, Updata’s IT Security price
index of 30 companies improved 1% (7% decline
among small-caps, 14% improvement among
bellwethers) (Figure 1), underperforming other
enterprise IT indices (Figure 2). This
performance includes the impact of price run-ups
associated with nine acquisitions of public
security vendors over the past year (Figure 3).
At October 13, the sector’s overall mean
Enterprise Value / Forward Revenue trading
multiple was 3.2x, versus 3.5x at the same time
last year. Disclosed M&A valuations year-to-date
are down by 5% versus last year, to a mean
Enterprise Value / LTM Revenues multiple of
6.6x. (Sector trading and M&A tables appear at
the end of this note.)
Figure 1: Security Stock Performance
Figure 2: Security Stock Performance Versus Other Sectors
Figure 3: Acquisitions of Public Security Vendors
Announce
Date
|
Seller
|
Buyer
|
Deal
Value
|
LTM
Rev
|
Mult of
LTM Rev
|
|
Oct-06
|
Citadel Security Software
|
McAfee
|
$60
|
$14
|
4.2x
|
|
Aug-06
|
Internet Security Systems
|
IBM
|
$1,089
|
$337
|
3.2x
|
|
Jul-06
|
WatchGuard Technologies
|
Francisco Partners
|
$83
|
$77
|
1.1x
|
|
Jun-06
|
RSA Security
|
EMC
|
$2,100
|
$322
|
6.5x
|
|
Apr-06
|
NetIQ
|
AttachmateWRQ
|
$303
|
$189
|
1.6x
|
|
Jan-06
|
Identix
|
Viisage
|
$740
|
$80
|
9.3x
|
|
Dec-05
|
Gemplus
|
Axalto
|
$1,170
|
$1,088
|
1.1x
|
|
Oct-05
|
BindView Development
|
Symantec
|
$177
|
$72
|
2.4x
|
|
Aug-05
|
CyberGuard
|
Secure Computing
|
$281
|
$66
|
4.3x
|
Source: Updata research
Security’s longstanding valuation premium over other
enterprise software sectors, such as network &
systems management (Figure 4), seems to be declining as the industry matures and dissolves
into other enterprise offerings. Forrester research
observes that security “growth will slow as
operating system vendors build up security in their
products and as app server, infrastructure, and
database management application vendors add security
features to their products.” Microsoft’s upcoming
Vista operating system, which incorporates numerous
security features, is a good example of absorption
of security into infrastructure offerings.
Figure 4: Network Security Management and Security Mean Forward Trading P/Es (top chart)
and Deal Value / LTM Revenues (bottom chart) (as of 10/13/06)
Source: Updata research
Surveys support evidence of slowing security
spending growth: Merrill Lynch recently found that
CISOs plan to increase security spending 3% over the
next 12-18 months, down from 11% in a survey several
months earlier. In August, Goldman Sachs reported
that 68% of companies expect to increase their
security budget, versus 89% last December.
Top
|
|
|
|
Market Consolidation Accelerates Change |
|
Record M&A activity is accelerating security’s
incorporation into storage, network management and
other infrastructure areas. Fueled by several large
acquisitions (IBM of ISS, EMC of RSA), announced
deal volume in 2006 year-to-date has exceeded $5.7
billion (comprising 73 deals), according to Updata’s
deal database. This already exceeds full-year 2005
deal volume of $4.4 billion. In all, since 2005 30%
of public pure-play security vendors have been or
are being acquired.
A handful of “Stack Dominators” – BMC, CA, Cisco,
EMC, IBM, Juniper, Microsoft, Oracle, Symantec –
have generated more than half of security M&A volume
since 2004. The Stack Dominators, so named based on
their efforts to compete across the enterprise
computing stack to increase customer wallet-share
and stickiness, will likely maintain or better their
acquisition pace for some time. As Forrester
research notes, "every large IT vendor has realized
you can't have a traditional revenue base without
security." This motivation is supported by
considerable financial means: Stack Dominators have
over $75 billion in cash and about ten times that in
equity value, plus billions more of available
financing.
Security is also targeted by vendors seeking to buy
growth. Analysis of acquisitions of public security
vendors since 2004 shows strong correlation between
a target’s recent revenue growth and purchase
multiples paid by the acquirer (Figure 5).
Statistical review of private security acquisitions
similarly indicates that growth is the most salient
value driver. In contrast, profitability and size
seem to have little direct impact on valuation
multiples.
Figure 5: Acquisitions of Public Security Firms since 2004
Source: Updata research
Private financial buyers are also becoming more acquisitive
in security – note the recent NetIQ and WatchGuard
transactions – and in software generally, resulting in
rising going-private transaction volumes and valuations
(Figure 6). The number of technology buyouts in 2005 was 20%
greater than in 2004, and 2006 is on track to show even
higher growth according to Goldman Sachs, which estimates
that technology private equity funds have $56 billion of
investable cash. Today several security vendors are
characterized by equity analysts as potential going-private
candidates.
Figure 6: U.S. Software Going-private Deals
Source: Updata research
Consolidation activity is self-reinforcing, as deals compel competitors to
follow suit. For example, IBM’s recently announced $1.3 billion acquisition of
Internet Security Systems pressures intrusion prevention vendors Check Point,
Juniper and Cisco (a major IBM partner), as well as managed security service
providers Symantec and VeriSign, to name a few. Even those not directly affected
feel the heat. To illustrate, following the ISS announcement, Forbes published
an article titled “HP Lacks Security”, and Wall Street analysts commented on
HP’s conspicuous absence from the roster of security buyers.
Especially pressured are large pure-play security “Powerhouses” (e.g. Check
Point, McAfee) and smaller “Specialists” (e.g. Entrust, Tumbleweed) that are
less diversified and gradually losing market share to the larger Stack
Dominators and financial consolidators (Figure 7).
Figure 7: Share of Security Spending by Vendor Type (by Dollar Volume and Percentage of Market) (Updata estimates)
Source: Updata research
Pure-plays are being
squeezed both by large
infrastructure players
and by nimbler
venture-backed
start-ups. The latter
often get acquired by
large vendors who pump
acquired products
through established
channels. For example,
since acquiring security
event management (SEM)
start-up Protego in
December 2004, Cisco has
built the customer base
to 2,200, according to
the Internet Research
Group, making it the
number one SEM vendor in
terms of market share.
Fear of getting
sidelined has fueled a
rise in “stretch” deals,
whereby smaller vendors
”bet the ranch” and make
large (in relation to
their size), and often
high-multiple
acquisitions (Figure 8).
For example, Secure
Computing recently
announced its intent to
spend $183 million in
cash (borrowing $113
million) and to issue 10
million shares of stock
to acquire message
security vendor
CipherTrust. Deal value
was equal to about half
of Secure Computing’s
market capitalization at
announcement.
Figure 8: Recent Security “Stretch” Deals
Announce
Date
|
Seller
|
Buyer
|
Deal
Value
|
LTM
Rev
|
Mult of
LTM Rev
|
|
Jul-06
|
Business Signatures
|
Entrust
|
$50
|
$1
|
38.9x
|
|
Jul-06
|
CipherTrust
|
Secure Computing
|
$265
|
$40
|
6.6x
|
|
Feb-06
|
nCipher (terminated)
|
SafeNet
|
$75
|
$29
|
2.6x
|
|
Jan-06
|
Identix
|
Viisage
|
$740
|
$80
|
9.3x
|
|
Jan-06
|
Permeo
|
Blue Coat
|
$61
|
$3
|
17.5x
|
|
Dec-05
|
Cyota
|
RSA Security
|
$145
|
$12
|
12.6x
|
Source: Updata research
On a positive note,
enterprise security
continues to have a
best-of-breed bent. A
recent Merrill Lynch
survey found that,
despite embedding of
security features, 77%
of companies purchasers
still plan to buy from
standalone security
vendors.
Top
|
|
|
|
Security Spending Priorities are Shifting |
|
Over
the last four years, losses reported from network
compromises and hacker attacks have declined,
according to the annual
CSI/FBI Computer Crime and
Security Survey. Similarly, IBM researchers recorded
a decrease in Internet worm and virus outbreaks
since 2004. In contrast, theft of digital identities
and records continues to rise, reducing trust on the
internet and making enterprises non-compliant with
security and privacy mandates.
Consequently, budgetary priorities are shifting, to
the benefit of vendors focused more on protecting
digital information rather than the IT
infrastructure. This trend can be seen in an August
survey of security spending priorities by research
firm
InfoPro, which found network access control,
outbound content compliance, security event
management, data encryption, authentication,
intrusion protection and identity management to be
in greatest demand. A Goldman Sachs survey found
leading corporate security concerns to be data
leakage, unpatched vulnerabilities, insider attacks,
spyware, phishing attacks, malicious code and spam.
Top
|
|
|
|
Beneficiaries of Change in the Security Market |
|
Security’s evolution toward information security is
driving higher valuations and demand growth for
Identity and Access Management (IAM)
solutions (Figure 9), which are rapidly replacing
threat protection technologies like antivirus and
intrusion protection as IT’s first line of defense.
Network Access Control (NAC) solutions, led by those
championed by Cisco and Microsoft, are an important
element of this shift. Gartner research estimates
that by the end of the year, 40% of companies will
deploy some form of NAC, up from just 4% in 2005, to
manage who or what accesses the network.
Figure 9: Forward P/E by Security Sector (top) and Projected 5-year EPS Growth Rates (bottom)
Source: Updata research
Other
high-growth areas within IAM include: strong
authentication to replace passwords; risk-based
authentication that adjusts security to needs;
enterprise single sign-on to mediate application
access; and rights management and encryption to
protect documents, databases and applications. EMC’s
acquisition of authentication vendor RSA, and the
U.S. Veterans Administration’s installation of data
encryption software on all its PCs and smart phones
are recent examples of IAM’s rising importance in
the security landscape.
Evolution of the information security paradigm also
increases the strategic value of Vulnerability
Assessment, which is critical to defining
policies governing risk management and to auditing
compliance with those policies. There is also demand
for extending vulnerability management technologies
to the application development lifecycle, and to all
IT assets – applications, databases and networking
devices.
Within Content Security, growth
opportunities arise from technologies that protect
identities and data, and support a trusted internet
environment. Outbound filtering, also known as data
loss prevention, is one emerging area of great
interest. Another is “drive-by” download exploit
prevention, which stops malware from being secreted
onto PCs when users visit an infected web site.
Need also exists for more precise heuristic and
anomaly-based detection capabilities that enhance
existing threat detection offerings. It seems likely
that major content security vendors including
McAfee, Symantec and TrendMicro will consider
extending their offerings into IAM given overlapping
goals, and Microsoft’s full-scale entrance into
security. For example, content security products
like anti-phishing and anti-spyware/keylogging
already protect identity on the web and are logical
adjacencies to encryption and authentication.
Firewalls and Intrusion
Protection devices also stand to benefit
from closer integration with identity and
vulnerability management functions that enable more
precise threat protection. Unified Threat Management
appliances are incorporating more security functions
onto the same platform and represent a continuing
growth market.
Overall, despite competitive and consolidation
pressures, growth opportunities remain for pure-play
security vendors that effectively address changing
needs of the market as the landscape rapidly evolves
into other areas of the enterprise stack.
Top
|
|
|
|
IT Security Public Company Valuations |
|
(in millions)
|
|
Market Value
|
Financial Data
|
Enterprise Value as a Multiple of
|
Equity Multiple
|
|
Company
|
Price
10/13/06
|
% of 52
Week Hi
|
Market Cap
|
Enterprise
Value (1)
|
LTM
Revenue
|
MRQ
Rev
Growth
YoY
|
LTM
EBITDA
Margin
|
Revenues
|
EBITDA (2)
|
Price / Earnings
|
|
LTM
|
CY
2006
|
CY
2007
|
LTM
|
CY
2006
|
CY
2007
|
LTM
|
CY
2006
|
CY
2007
|
|
Bellwethers |
|
Check Point
|
$ 20.48
|
90.0%
|
$ 4,935
|
$ 3,209
|
$ 570
|
-3.9%
|
53.5%
|
5.6x
|
5.6x
|
5.3x
|
10.5x
|
9.3x
|
8.9x
|
17.1x
|
15.4x
|
14.4x
|
|
Cogent
|
$ 14.41
|
51.9%
|
$ 1,384
|
$ 985
|
$ 121
|
-66.4%
|
45.0%
|
8.2x
|
8.8x
|
6.1x
|
18.2x
|
21.6x
|
15.4x
|
27.1x
|
38.7x
|
24.8x
|
|
Internet Security Systems (5)
|
$ 27.96
|
99.9%
|
$ 1,252
|
$ 1,032
|
$ 337
|
4.6%
|
20.5%
|
3.1x
|
2.9x
|
2.6x
|
14.9x
|
14.0x
|
12.6x
|
36.4x
|
28.7x
|
25.5x
|
|
Juniper
|
$ 17.45
|
70.7%
|
$ 10,533
|
$ 8,494
|
$ 2,182
|
26.2%
|
27.4%
|
3.9x
|
3.7x
|
3.3x
|
14.2x
|
12.1x
|
10.4x
|
29.6x
|
23.6x
|
20.1x
|
|
L-1 Identity Solutions
|
$ 14.53
|
75.5%
|
$ 1,050
|
$ 1,007
|
$ 78
|
23.4%
|
8.3%
|
13.0x
|
6.0x
|
3.7x
|
156.0x
|
37.3x
|
16.2x
|
NM
|
NM
|
73.3x
|
|
Macrovision
|
$ 26.50
|
98.1%
|
$ 1,407
|
$ 1,133
|
$ 223
|
31.4%
|
25.1%
|
5.1x
|
4.6x
|
4.1x
|
20.3x
|
15.0x
|
12.7x
|
70.0x
|
23.5x
|
20.4x
|
|
McAfee
|
$ 27.40
|
84.1%
|
$ 4,422
|
$ 3,269
|
$ 1,056
|
13.0%
|
24.0%
|
3.1x
|
2.9x
|
2.7x
|
12.9x
|
10.1x
|
8.9x
|
34.4x
|
21.1x
|
19.0x
|
|
RSA Security (5)
|
$ 27.97
|
100.0%
|
$ 2,142
|
$ 1,924
|
$ 340
|
23.4%
|
14.0%
|
5.7x
|
NA
|
NA
|
40.6x
|
NA
|
NA
|
58.7x
|
NA
|
NA
|
|
Symantec
|
$ 21.63
|
90.1%
|
$ 22,686
|
$ 21,205
|
$ 4,703
|
79.9%
|
28.0%
|
4.5x
|
4.0x
|
3.8x
|
16.1x
|
12.1x
|
11.2x
|
307.5x
|
21.7x
|
19.3x
|
|
Trend Micro (4)
|
$ 30.03
|
76.3%
|
$ 4,066
|
$ 3,173
|
$ 661
|
16.8%
|
39.1%
|
4.8x
|
NA
|
NA
|
12.3x
|
NA
|
NA
|
26.1x
|
NA
|
NA
|
|
VeriSign
|
$ 20.70
|
81.3%
|
$ 5,104
|
$ 4,595
|
$ 1,557
|
-9.0%
|
24.8%
|
3.0x
|
2.9x
|
2.6x
|
11.9x
|
11.1x
|
10.1x
|
7.6x
|
26.8x
|
22.1x
|
|
Websense
|
$ 24.26
|
69.6%
|
$ 1,173
|
$ 835
|
$ 165
|
22.5%
|
32.5%
|
5.1x
|
4.7x
|
4.0x
|
15.6x
|
13.6x
|
12.3x
|
31.4x
|
25.0x
|
22.1x
|
| |
|
Mean
|
|
82.3%
|
|
|
|
13.5%
|
28.5%
|
4.8x
|
4.8x
|
4.0x
|
14.7x
|
15.8x
|
11.8x
|
33.7x
|
24.5x
|
20.3x
|
|
Median
|
|
82.7%
|
|
|
|
19.7%
|
26.2%
|
4.9x
|
4.6x
|
3.8x
|
14.9x
|
12.1x
|
11.2x
|
29.6x
|
23.5x
|
20.4x
|
(1) Enterprise value is equal to market capitalization plus debt and pfd stock minus cash and cash equivalents
(2) EBITDA excludes all one-time charges and expenses
(3) Outliers, as indicated by a shaded box, are excluded from mean calculations; ISS and RSA excluded from mean and median multiples calculations
(4) Trend Micro share price and financials converted from Yen
(5) RSA to be acquired by EMC; ISS to be acquired by IBM
(in millions)
|
|
Market Value
|
Financial Data
|
Enterprise Value as a Multiple of
|
Equity Multiple
|
|
Company
|
Price
10/13/06
|
% of 52
Week Hi
|
Market
Cap
|
Enterprise
Value (1)
|
LTM
Revenue
|
MRQ
Rev
Growth
YoY
|
LTM
EBITDA
Margin
|
Revenues
|
EBITDA (2)
|
Price / Earnings
|
|
LTM
|
CY
2006
|
CY
2007
|
LTM
|
CY
2006
|
CY
2007
|
LTM
|
CY
2006
|
CY
2007
|
|
Small Cap |
|
ActivIdentity
|
$ 4.48
|
85.3%
|
$ 205
|
$ 67
|
$ 45
|
7.5%
|
-63.3%
|
1.5x
|
1.3x
|
NA
|
NM
|
NA
|
NA
|
NM
|
NM
|
NA
|
|
Aladdin
|
$ 16.99
|
71.4%
|
$ 258
|
$ 176
|
$ 85
|
4.0%
|
19.2%
|
2.1x
|
2.0x
|
1.8x
|
10.8x
|
12.1x
|
10.6x
|
17.5x
|
16.3x
|
14.3x
|
|
Blue Coat
|
$ 20.45
|
38.8%
|
$ 310
|
$ 253
|
$ 141
|
26.5%
|
9.4%
|
1.8x
|
1.6x
|
1.4x
|
19.1x
|
NA
|
NA
|
37.7x
|
38.4x
|
28.8x
|
|
Certicom
(7) |
$ 5.60
|
72.8%
|
$ 259
|
$ 238
|
$ 16
|
36.1%
|
-18.1%
|
14.5x
|
11.3x
|
6.9x
|
NM
|
NA
|
25.3x
|
NM
|
NM
|
29.3x
|
|
Digimarc
|
$ 9.08
|
98.2%
|
$ 194
|
$ 175
|
$ 104
|
0.6%
|
-4.6%
|
1.7x
|
1.7x
|
1.5x
|
NM
|
NA
|
NA
|
NM
|
NM
|
173.0x
|
|
Entrust
|
$ 3.50
|
65.3%
|
$ 209
|
$ 134
|
$ 92
|
-11.1%
|
1.8%
|
1.5x
|
1.4x
|
1.1x
|
79.8x
|
NA
|
NA
|
NM
|
NM
|
47.0x
|
|
F-Secure
(5) |
$ 2.94
|
67.5%
|
$ 477
|
$ 406
|
$ 90
|
34.7%
|
17.5%
|
4.5x
|
NA
|
NA
|
25.6x
|
NA
|
NA
|
43.4x
|
NA
|
NA
|
|
Hi/fn
|
$ 5.05
|
61.7%
|
$ 71
|
$ 32
|
$ 43
|
1.8%
|
-13.0%
|
0.7x
|
0.7x
|
0.6x
|
NM
|
NA
|
NA
|
NM
|
NM
|
24.9x
|
|
Intrusion
|
$ 0.27
|
8.6%
|
$ 2
|
$ 4
|
$ 5
|
-29.5%
|
-75.0%
|
0.8x
|
NA
|
NA
|
NM
|
NA
|
NA
|
NM
|
NA
|
NA
|
|
nCipher
(6) |
$ 4.45
|
78.3%
|
$ 127
|
$ 53
|
$ 37
|
30.5%
|
8.7%
|
1.4x
|
NA
|
NA
|
16.3x
|
NA
|
NA
|
36.8x
|
NA
|
NA
|
|
SafeNet
|
$ 22.93
|
62.5%
|
$ 611
|
$ 532
|
$ 273
|
10.1%
|
10.7%
|
1.9x
|
1.9x
|
1.7x
|
18.2x
|
12.9x
|
9.2x
|
180.7x
|
22.1x
|
15.7x
|
|
Secure Computing
|
$ 7.14
|
46.7%
|
$ 435
|
$ 397
|
$ 139
|
48.4%
|
16.1%
|
2.9x
|
2.3x
|
1.8x
|
17.8x
|
13.4x
|
9.0x
|
42.4x
|
20.2x
|
16.6x
|
|
SonicWALL
|
$ 11.02
|
96.7%
|
$ 749
|
$ 532
|
$ 154
|
32.4%
|
1.2%
|
3.5x
|
3.0x
|
2.7x
|
297.2x
|
NA
|
NA
|
NM
|
62.3x
|
38.9x
|
|
SurfControl
(4) |
$ 8.22
|
73.8%
|
$ 237
|
$ 161
|
$ 102
|
6.0%
|
8.8%
|
1.6x
|
NA
|
NA
|
17.8x
|
NA
|
NA
|
416.3x
|
NA
|
NA
|
|
Tumbleweed
|
$ 2.85
|
68.3%
|
$ 146
|
$ 117
|
$ 56
|
20.7%
|
-1.2%
|
2.1x
|
2.0x
|
1.8x
|
NM
|
NA
|
NA
|
NM
|
NM
|
18.8x
|
|
Vasco Data Security
|
$ 10.89
|
87.3%
|
$ 410
|
$ 397
|
$ 63
|
50.0%
|
23.0%
|
6.3x
|
5.2x
|
3.9x
|
27.5x
|
21.6x
|
14.4x
|
42.3x
|
35.9x
|
27.5x
|
|
WatchGuard
(8) |
$ 4.23
|
79.8%
|
$ 149
|
$ 76
|
$ 73
|
-19.0%
|
-11.6%
|
1.0x
|
NA
|
NA
|
NM
|
NA
|
NA
|
NM
|
NA
|
NA
|
|
Zix
|
$ 0.88
|
34.8%
|
$ 52
|
$ 36
|
$ 15
|
22.0%
|
-175.8%
|
2.4x
|
2.0x
|
1.5x
|
NM
|
NA
|
NA
|
NM
|
NM
|
NM
|
| |
|
Mean
|
|
66.5%
|
|
|
|
15.1%
|
-4.1%
|
2.3x
|
2.1x
|
2.2x
|
19.1x
|
15.0x
|
13.7x
|
36.7x
|
32.5x
|
26.2x
|
|
Median
|
|
69.9%
|
|
|
|
15.4%
|
1.5%
|
1.9x
|
2.0x
|
1.8x
|
18.7x
|
13.2x
|
10.6x
|
42.4x
|
29.0x
|
27.5x
|
(1) Enterprise value is equal to market capitalization plus debt and pfd stock minus cash and cash equivalents
(2) EBITDA excludes all one-time charges and expenses
(3) Outliers, as indicated by a shaded box, are excluded from mean calculations; Identix and WatchGuard excluded from mean and median calculations
(4) SurfControl share price converted from GBP
(5) F-Secure share price and financials converted from Euros
(6) nCipher share price and financials converted from GBP
(7) Certicom share price converted from CAD
(8) Watchguard to be acquired by Francisco Partners
Source: Updata research
Top
|
|
|
|
IT Security M&A Transactions YTD 2006 |
|
|
Ann't Date
|
Seller
|
Buyer
|
Deal Value
|
LTM Rev
|
Mult of LTM Rev
|
Description
|
|
Oct-06
|
Onigma
|
McAfee
|
$20
|
NA
|
NA
|
Data protection solutions that prevent confidential data from leaving the enterprise
|
|
Oct-06
|
Singlefin
|
St. Bernard Software
|
NA
|
NA
|
NA
|
On-demand email filtering, Web filtering and IM management for SMEs
|
|
Oct-06
|
Citadel Security Software
|
McAfee
|
$60
|
$14
|
4.2x
|
Security policy compliance and vulnerability remediation
|
|
Sep-06
|
Neogent
|
Sun
|
NA
|
NA
|
NA
|
IAM deployment tools and services
|
|
Sep-06
|
Thinking Stone
|
Breach Security
|
NA
|
NA
|
NA
|
ModSecurity web application firewall
|
|
Sep-06
|
LURHQ
|
SecureWorks
|
NA
|
NA
|
NA
|
MSSP
|
|
Sep-06
|
e-DMZ Security (Managed Services Division)
|
Verano
|
NA
|
NA
|
NA
|
Co-managed firewall and intrusion detection services
|
|
Sep-06
|
SpecTal
|
L-1 Identity Solutions
|
$100
|
$50
|
2.0x
|
Security and intelligence solutions specializing in government
|
|
Aug-06
|
Internet Security Systems
|
IBM
|
$1,089
|
$337
|
3.2x
|
Managed security services
|
|
Aug-06
|
Imperfect Networks
|
Spirent Communications
|
$4
|
NA
|
NA
|
Network security testing appliance
|
|
Aug-06
|
Virtue Technologies
|
Globalsat Telecommunications Solutions
|
NA
|
NA
|
NA
|
Network security and design solutions
|
|
Aug-06
|
Applied Networking
|
LogMeIn
|
NA
|
NA
|
NA
|
Zero-configuration virtual private networking (VPN) service
|
|
Aug-06
|
SealedMedia
|
Stellent
|
$15
|
NA
|
NA
|
Enterprise-strength digital rights management (E-DRM) solutions
|
|
Aug-06
|
Bitform
|
Stellent
|
$3
|
NA
|
NA
|
Content cleansing and filtering
|
|
Jul-06
|
WatchGuard Technologies
|
Francisco Partners
|
$83
|
$77
|
1.1x
|
UTM solutions
|
|
Jul-06
|
Business Signatures
|
Entrust
|
$50
|
$1
|
38.9x
|
Real-time fraud detection
|
|
Jul-06
|
True North Solutions (Comm Sales and Prof Svcs Div)
|
FishNet Security
|
NA
|
NA
|
NA
|
Information security product sales, training, support, and consulting services
|
|
Jul-06
|
Iridian Technologies
|
Viisage
|
$35
|
NA
|
NA
|
Iris-based recognition technologies; biometrics
|
|
Jul-06
|
BlackSpider
|
SurfControl Plc
|
$39
|
$7
|
5.5x
|
MSSP, email filtering
|
|
Jul-06
|
CipherTrust
|
Secure Computing
|
$265
|
NA
|
NA
|
Messaging security
|
|
Jul-06
|
3e Technologies
|
EFJ
|
$36
|
$24
|
1.5x
|
Secure wireless infrastructure
|
|
Jul-06
|
Meetinghouse Data Communications
|
Cisco Systems
|
$44
|
NA
|
NA
|
Network access control
|
|
Jul-06
|
Mexi Secure Solutions
|
United Business Media
|
$3
|
NA
|
NA
|
Secure communication and data access for the healthcare industry
|
|
Jun-06
|
RSA Security
|
EMC
|
$2,100
|
$322
|
6.5x
|
Protection of online identities and digital assets
|
|
Jun-06
|
Network Appliance (NetCache business)
|
Blue Coat
|
NA
|
NA
|
NA
|
Secure content delivery appliances
|
|
Jun-06
|
Orion Security Solutions
|
Entrust
|
$8
|
$4
|
2.0x
|
PKI services to federal government
|
|
Jun-06
|
Securac
|
Edentify
|
NA
|
NA
|
NA
|
Enterprise governance, risk, and compliance management software and services
|
|
Jun-06
|
Preventsys
|
McAfee
|
NA
|
NA
|
NA
|
Security risk management and automated security compliance reporting
|
|
Jun-06
|
C-VIS GmbH
|
Cross Match Technologies
|
NA
|
NA
|
NA
|
Biometrics; facial recognition
|
|
Jun-06
|
WhiteHat
|
Neotel
|
NA
|
NA
|
NA
|
Security services with expertise in strong authentication
|
|
Jun-06
|
Lucid Security
|
AmbironTrustWave
|
NA
|
NA
|
NA
|
Provider of Intrusion Prevention System (IPS) technology
|
|
May-06
|
ENIRA Technologies
|
ArcSight
|
NA
|
NA
|
NA
|
Provider of solutions for responding to network security compromises
|
|
May-06
|
Loss Control Technologies
|
ID Insight
|
NA
|
NA
|
NA
|
Protects users from fraudulent activity
|
|
May-06
|
CoSine Communications (IP Assets)
|
Fortinet
|
NA
|
NA
|
NA
|
Internet Protocol (IP) Service Delivery Platform
|
|
May-06
|
Whale Communications
|
Microsoft
|
$75
|
$15
|
5.0x
|
SSL VPN, web application firewall
|
|
May-06
|
Geotrust
|
VeriSign
|
$125
|
NA
|
NA
|
Certificate issuance and management
|
|
May-06
|
Logico Smart Card Solutions
|
Vasco
|
$2
|
$1
|
1.5x
|
Smart-card based authentication
|
|
May-06
|
Farm9
|
SecurePipe
|
NA
|
NA
|
NA
|
MSSP
|
|
Apr-06
|
NetIQ
|
AttachmateWRQ
|
$303
|
$189
|
1.6x
|
Integrated systems and security management
|
|
Apr-06
|
Espiria
|
Solutionary
|
NA
|
NA
|
NA
|
Security program management solutions
|
|
Apr-06
|
datapol GmbH
|
Avira
|
NA
|
NA
|
NA
|
Data recovery
|
|
Apr-06
|
Passmark
|
RSA Security
|
$48
|
$7
|
6.9x
|
Software-based authentication
|
|
Apr-06
|
NeoValens
|
DesktopStandard
|
NA
|
NA
|
NA
|
Windows kernel mode security solutions; per-process privilege management
|
|
Apr-06
|
Ewido Networks
|
GRISOFT
|
NA
|
NA
|
NA
|
Anti-malware
|
|
Apr-06
|
e-Security
|
Novell
|
$72
|
NA
|
NA
|
Security information management and compliance
|
|
Apr-06
|
SaraX Software Security Operations Portal
|
Viyya Technologies
|
NA
|
NA
|
NA
|
Security governance tool
|
|
Apr-06
|
IBM (Security standards testing unit)
|
Nuvo Network Management
|
$1
|
NA
|
NA
|
Third-party standards testing operation
|
|
Apr-06
|
Assurent Secure Technologies
|
TELUS
|
NA
|
NA
|
NA
|
Provides IT security services and products
|
|
Apr-06
|
SiteAdvisor
|
McAfee
|
NA
|
NA
|
NA
|
Web safety; site analysis and filtering
|
|
Apr-06
|
Incache
|
RippleTech
|
NA
|
NA
|
NA
|
Enterprise application and database security monitoring products
|
|
Mar-06
|
OmniSecure
|
Protegrity
|
NA
|
NA
|
NA
|
Data security company providing transparent encryption to protect sensitive data
|
|
Mar-06
|
Indicii Salu
|
Comodo
|
NA
|
NA
|
NA
|
Server-centric PKI; Central encryption and management
|
|
Mar-06
|
Interpeak
|
Wind River Systems
|
$20
|
NA
|
NA
|
Wireless security
|
|
Mar-06
|
SyPixx Networks
|
Cisco Systems
|
$51
|
NA
|
NA
|
Bridges video surveillance systems with Internet Protocol-based networks
|
|
Mar-06
|
Authentica
|
EMC
|
NA
|
NA
|
NA
|
Digital Rights Management (DRM) software
|
|
Mar-06
|
SiegeWorks
|
FishNet Security
|
NA
|
NA
|
NA
|
Enterprise security services, consulting and integration
|
|
Mar-06
|
Entropy
|
Calyx
|
$6
|
NA
|
NA
|
IT security specialist
|
|
Feb-06
|
eMeta
|
Macrovision
|
$35
|
NA
|
NA
|
Access control and commerce software for media and software companies
|
|
Feb-06
|
Arxceo
|
Japan Communications
|
$15
|
NA
|
NA
|
Anti-reconnaissance and anomaly-based, attack-prevention appliances
|
|
Feb-06
|
Snapcentric
|
Verisign
|
$12
|
NA
|
NA
|
online fraud detection solutions using advanced anomaly detection
|
|
Feb-06
|
Dynacom i:filter product
|
Microsoft
|
NA
|
NA
|
NA
|
Web filtering solution
|
|
Feb-06
|
Breakwater Security
|
Perimeter
|
NA
|
NA
|
NA
|
MSSP that does firewall monitoring and IDS
|
|
Feb-06
|
nCipher (terminated)
|
SafeNet
|
$75
|
$29
|
2.6x
|
Identity protection and management
|
|
Feb-06
|
MailFrontier
|
SonicWALL
|
$31
|
NA
|
NA
|
Email security and compliance solutions to the mid-enterprise market
|
|
Feb-06
|
SecuriMetrics
|
Viisage
|
$28
|
$10
|
2.8x
|
Iris-based recognition technologies
|
|
Feb-06
|
Red Cliff
|
Perimeter
|
NA
|
NA
|
NA
|
Provider of managed security services to credit unions
|
|
Jan-06
|
PlantData
|
Verano
|
NA
|
NA
|
NA
|
SCADA security, IT services and industrial automation firm
|
|
Jan-06
|
Fairbridge Communications
|
7global
|
NA
|
NA
|
NA
|
Internet security and managed services specialists
|
|
Jan-06
|
Identix
|
Viisage
|
$740
|
$80
|
9.3x
|
Biometric technology
|
|
Jan-06
|
TC TrustCenter
|
GeoTrust
|
NA
|
NA
|
NA
|
Managed trust services in Germany
|
|
Jan-06
|
Navisware (FileLine)
|
Adobe Systems
|
NA
|
NA
|
NA
|
FileLine Digital Rights Management (DRM) division
|
|
Jan-06
|
IMlogic
|
Symantec
|
$75
|
$12
|
6.3x
|
Secure Instant Messaging Management
|
|
Jan-06
|
Permeo
|
Blue Coat
|
$61
|
$3
|
17.5x
|
On-demand endpoint access, security and information protection
|
Source: Updata research Top
|
|
|
|
Upcoming Events |
|
October 25-26
The Strategic Research Institute presents, “2006
Enterprise Software Investment Forum: SAAS, OnDemand
Software, Open Source, and Opportunities in New
Technologies and Distribution Models,” in San Jose,
California. Don More of Updata Capital will speak at
a panel entitled, "Investment and Business
Opportunities in the Software-as-a-Service
Marketplace."
Click here for more information.
November 8-9
The Software & Information Industry Association
presents, “OnDemand: Enabling and Delivering
Software as a Service,” in San Jose, California.
Click here for more information.
Top |
|
|
|
For more information, contact:
Don More:
dmore@updata.com
Rob Lung:
rlung@updata.com
Updata Capital, Inc. Disclaimer
The information and opinions in this report were prepared by Updata Capital, Inc. ("Updata"). The information herein is believed by Updata to be reliable and has been obtained from and based upon public sources believed to be reliable, but Updata makes no representation as to the accuracy or completeness of such information. Updata may provide, may have provided or may seek to provide M&A advisory services to one or more companies mentioned herein. In addition, employees of Updata may have purchased or may purchase securities in one or more companies mentioned in this report. Opinions, estimates and analyses in this report constitute the current judgment of the author as of the date of this report. They do not necessarily reflect the opinions of Updata and are subject to change without notice. Updata has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, estimate, forecast or analysis set forth herein, changes or subsequently becomes inaccurate. This report is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction.
Data cited herein is sourced from Updata’s database and derived from publicly available sources – additional information is available on request.
Top |
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© Copyright Updata Capital All Rights Reserved |
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State
of the IT Security Market