Tech and Cybersecurity Headline M&A Activity Last Week

​Last week, a number of tech and cybersecurity firms made deals to be acquired. AT&T made another purchase, this time of AlienVault, a cybersecurity firm. Centrify, another cybersecurity provider, was bought out by private equity firm Thoma Bravo. Tintri filed for chapter 11 bankruptcy and was acquired by DataDirect Networks hours later. LifeWorks USA was acquired by Canadian HR firm Morneau Shepell. Winchester Electronics, a 77-year-old company, was acquired by Ireland’s Aptiv. Lastly, on Friday, Broadcom finalized a deal to acquire software provider CA Technologies.

• AT&T (NYSE: T) made another acquisition last week, its second since the Department of Justice approved its bid for Time Warner. This time AT&T is acquiring digital security firm AlienVault for an undisclosed sum. AlienVault provides software that combines multiple essential security capabilities in one unified platform. The firm also operates Open Threat Exchange: a platform for digital security professionals to connect and collaborate on the latest trends in cybersecurity. This deal allows AT&T to expand its existing security offerings to enterprises and small businesses.

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• Centrify, a cybersecurity company, agreed to be bought out by private equity firm Thoma Bravo for an undisclosed amount. Centrify is a provider of user-verification software and offers products across a spectrum in the identity access management industry through a cutting-edge platform. The Centrify and AlienVault deals mark the third and fourth major cybersecurity deals in the last three weeks. According to MarketsandMarkets, the cybersecurity market is expected to grow from $138 billion in 2017 to over $230 billion in 2022. Backing from a growth-focused private equity firm like Thoma Bravo will help Centrify expand its production capabilities organically and through acquisitions.

• Tintri, a developer of an enterprise cloud platform designed to store and manage cloud applications automatically, filed for chapter 11 bankruptcy on Tuesday and was acquired hours later by DataDirect Networks. Tintri went public in June 2017 and was at one point valued at nearly $900 million, according to Silicon Valley Business Journal. Throughout the last twelve months, two CEOs left and the company’s staff has dwindled in number. The company’s platform, All-Flash Array, can manage and control the environment for cloud-native applications automatically.

• On Tuesday, Canadian human resources management company Morneau Shepell announced its acquisition of LifeWorks USA for $426 million. LifeWorks is a provider of employee assistance and financial wellness software programs. The company’s employee engagement platform is designed to provide employee assistance, recognition, communication, and financial wellness programs with real-time data and insights. “LifeWork’s goal is to positively impact the health and well-being of employees globally with our cutting-edge technology. This transaction brings us one step closer to that goal,” said Jamie True, CEO of LifeWorks.

• Winchester Electronics has reached an agreement to be acquired by advanced computing and network architecture company Aptiv (NYSE: APTV) for $650 million. Founded in 1941, Winchester has evolved into a designer and manufacturer of interconnect products and services designed for harsh implementations. The firm offers a wide portfolio of fiber optic connectors, power connector systems, input/output connectors, and value-added cables and electromechanical assemblies. Winchester’s products service the medical, industrial, military, commercial aviation, and telecommunications industries. The deal will help Aptiv expand into the market for harsh-environment computing.
  

• Broadcom (NASDAQ: AVGO) made a big move into software production late last week. The company reached an agreement to acquire CA Technologies (NASDAQ: CA) for $18.9 billion. New York-based CA Technologies is a developer of an enterprise IT software designed to enable businesses to carry out their daily operations smoothly. The company’s activities include creating systems software that runs in the mainframe, developing distributed computing, and designing virtual machine and cloud computing environments. Broadcom’s primary business is the design and manufacturing of semiconductor chips. While Broadcom does develop some software for support of its chips, it is not a material segment of the business, making the CA Technologies deal its first major step into software creation.