November Cyber Intelligence Review
Barracuda Networks, a provider of advanced threat protection solutions, filed its S-1 on October 23, 2013. Barracuda plans to offer 4.14 million shares at a range of $18.00 – $21.00 per share, and will trade on the NYSE under the symbol, “CUDA.” The company has received an influx of private capital over the past several years, securing $175.6 million in venture funding since 2006. Barracuda’s announcement highlightsthe strength of the capital markets for cybersecurity companies, as investors continue to demonstrate a strongdesire for innovative, growth-oriented firms.
M&A activity remained strong for both cybersecurity and data companies in October. CACI International headlined sector M&A with its $820.0 million acquisition of Six3 Systems, a provider of cybersecurity and intelligence solutions. The opportunity for CACI to expand its footprint within the high-growth cyber and intelligence sectors commanded an 11.3x EV / LTM EBITDA multiple for Six3. NTT Communications Corporation acquired Virtela Technology Services, a provider of cloud-based data and security solutions, for $512.0 million, allowing the company to expand its presence within the U.S. cloud-computing market.
VC activity remained robust for both data and cybersecurity companies as well. Data companies secured $220+ million in funding during October, while cybersecurity companies secured a total of $175+ million for the month. High-profile fundings included Lookout, a provider of anti-malware and fraud detection solutions, and MongoDB, a provider of data analytics and content management solutions. Data companies have secured a total of $2.7 billion in venture capital in 2013, while cybersecurity companies have secured $1.1 billion, illustrating consistently strong investor demand for well-positioned companies in both sectors.