The month of May featured several cybersecurity headlines, in addition to many M&A and venture capital (“VC”) transactions. A confidential report prepared by the Defense Science Board listed advanced weapon system designs, such as those of the Patriot missile and Aegis ballistic missile, that have been compromised by Chinese cyberspies. Amidst frequent and high-profile cyber breaches in both the government and private sector, VCs invested about $350 million into IT security deals in 1Q13, up 90% over 1Q12. On the Big Data front, President Obama signed an executive order that mandated all legally-permissible federal data be made publicly accessible in machine-readable format.
On the M&A front, Blue Coat Systems (a portfolio company of Thoma Bravo) acquired Solera Networks, a provider of security analytics and forensics solutions; Vista Equity Partners purchased publicly-traded Websense, a provider of web, email, and data security solutions, for nearly $1 billion; and Haystax Technology acquired FlexPoint Technology, a provider of security services and cloud computing solutions. In VC funding news, Digital Signal Corporation, a provider of 3D long-range facial recognition solutions for government and commercial clients, raised a $50 million Series D round to expand sales, distribution, and manufacturing. AirWatch, a provider of mobile security and mobility management solutions, raised another $25 million to extend its Series A round from February 2013 to a total of $225 million. Finally, Cloudant, a provider of data hosting and analytics solutions, raised a $12 million Series B round to support global expansion and grow support, service, and go-to-market strategies.