Cybersecurity M&A volume reaches $77.5 billion in 2021: report

Mergers and acquisitions in cybersecurity grew to $77.5 billion in 2021, according to research from cybersecurity consultancy Momentum. 

In a report on 2021, the firm said 83 cybersecurity company capital raises surpassed $100 million. There were fourteen $1 billion mergers and acquisitions, including deals involving McAfee, Augh0, Mimecast, Thycotic, Proofpoint and Avast. 

Proofpoint was acquired in August 2021 for $12.3 billion in cash while NortonLifeLock merged with Avast PLC in a $8.4 billion deal. Okta acquired Auth0 for $6.4 billion and Symphony Technology Group bought McAfee’s enterprise security business for $4 billion. 

There were more than 1,000 financing deals involving cybersecurity companies and 286 mergers and acquisitions. 2021 saw five cybersecurity IPOs in 2021 — KnowBe4, DarkTrace, SentinelOne, Riskified and Forgerock — with an average IPO raising $467 million.

The numbers far surpassed 2020, which saw 728 deals with cybersecurity companies and $19.7 billion in mergers and acquisitions activity. 

Momentum

The top categories for financing, mergers and acquisitions include security consulting/MSSP, risk and compliance, cloud security, data security and threat intel/incident response. The top categories for VC financing ranged from risk and compliance to data security, network security and infrastructure security. 

Dave DeWalt, founder of late-stage cybersecurity VC firm NightDragon and a contributor to the

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