Cybersecurity Oversights in Mergers and Acquisitions
One such acquisition, expected to close in the first quarter of 2026, combines HPE Aruba and Juniper Networks to focus on AI workloads and secure solutions. The growing need for AI capabilities is a key target, with numerous tech industry mergers anticipated by 2025. The IT security sector is witnessing significant M&A activity, with AI driving deals like the HPE Aruba…
Cybersecurity is often overlooked in the process of mergers and acquisitions (M&A), where the primary focus tends to be on financial due diligence. This oversight can lead to significant risks as companies inherit the entire digital footprint of the acquired firm, increasing the likelihood of encountering security vulnerabilities.
The Importance of Cybersecurity Audits
In the realm of M&A, conducting comprehensive cybersecurity audits is crucial. These audits should include a thorough examination of the acquired company's security policies to identify potential threats. Questions regarding identity management are essential to ensure that all access controls are properly aligned and secure. As mergers span across different industries, regions, and regulatory environments, compliance audits are non-negotiable and must align with the strictest regulatory requirements to mitigate business risks.
Ignoring cybersecurity can erode trust and damage reputations, making a proactive approach essential in the M&A process.
Cybersecurity as a Business Risk
Cybersecurity should be viewed as a significant business risk in M&A, similar to financial liabilities. The failure to address security concerns can result in a loss of trust and reputational damage, which can be costly for the involved entities. A proactive strategy that prioritizes security due diligence is essential to safeguard against these risks.
Impact of Artificial Intelligence on M&A
Artificial intelligence (AI) is driving major technological M&A deals, with the IT security industry witnessing several significant acquisitions. The growing need for AI capabilities is a key target, with numerous tech industry mergers anticipated by 2025. One such acquisition, expected to close in the first quarter of 2026, combines HPE Aruba and Juniper Networks to focus on AI workloads and secure solutions.
Recent Acquisitions in the IT Security Industry
Recent notable acquisitions include Check Point's acquisition of Veriti Security Ltd. and Zscaler's purchase of Red Canary Inc. Veriti Security Ltd. provides automated vulnerability scanning using AI to prioritize vulnerabilities and offers a virtual patching tool to address these issues. Check Point plans to integrate Veriti into its Infinity architecture, enhancing its security offerings.
Similarly, Zscaler, known for protecting cloud environments, has acquired Red Canary, a company that offers managed detection and response (MDR) services. The acquisition aims to enhance Red Canary's MDR capabilities, further strengthening Zscaler's position in the cybersecurity market.