December Cyber Intelligence Review
Barracuda Networks, a provider of advanced threat protection solutions, made its public debut on November 7, 2013, opening at $21.70, 20.6% above its final offering price of $18.00. Barracuda’s stock has maintained its initial increase, closing at $20.70 on November 29, 13.3% above its final offering price. With its strong revenue profile and growth prospects, Barracuda generated over $175 million in venture capital funding before its public offering, and continues to attract strong public demand, further highlighting the capital markets’ interest in innovative, growth-oriented cybersecurity companies.
M&A activity remained strong for data companies in November. Experian plc headlined sector M&A with its $850.0 million acquisition of Passport Health Communications, Inc., a provider of data-based solutions for hospitals and healthcare providers. The opportunity for Experian to expand its footprint within the highgrowth healthcare market commanded a 7.0x EV / LTM Revenue multiple and a 28.3x EV / LTM EBITDA multiple for Passport Health. Additionally, Neustar, Inc. acquired Aggregate Knowledge, Inc., a provider of predictive audience and campaign analytics solutions, for $119.0 million. With the majority of revenue derived from managing databases of phone numbers for carriers, the acquisition will allow Neustar to expand the targeted marketing capabilities of its Information Services unit, which currently makes up roughly a quarter of its revenue.
In addition to a robust M&A market, data companies experienced strong VC activity in November.Fundings for the month of November reached $220 million, bringing total YTD funding to $2.7 billion. High profile fundings included Box, Inc., a provider of content-sharing solutions, and PrimaryData, a provider of cloud storage solutions. Box, Inc. raised $100 million in a Series H funding, bringing its total funding to over $400 million and implying a ~$2 billion valuation for the company. PrimaryData raised $50 million in a Series A funding, with the goal of launching its software-defined data center technologies in the second quarter of 2014.