The current economic environment, volatile market conditions and recession fears have slowed down the M&A activity in cybersecurity space in the Asia-Pacific (APAC) region in 2022. Subsequently, there is a decline of 12% in cybersecurity M&A deals volume during 2022 compared to the previous year, according to GlobalData.
An analysis of GlobalData’s Financial Deals Database reveals that a total of 44 mergers & acquisitions (M&A) deals were announced in the cybersecurity space in APAC during 2022 compared to 50 during 2021.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “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.
“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.
“However, due to recession fears, 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.”
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.
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
