Security deal trend continues

Here at the Corum Group research team, we went above and beyond on our homework for this year's Forecast 2011 M&A webinar. One of the things that all our research allows us to do is see patterns that may turn into trends, and I really enjoy getting to pass those insights on.

 

The trend that leaped out to me the most after our review of 2010 was in the security arena. We saw a lot of security deals last year, particularly with deals for over $1 billion dollars like the McAfee [acquired by Intel] and VeriSign [acquired by Symantec] deals. This trend will continue into 2011, and was reinforced with the deal that went through just after the new year, with Dell acquiring SecureWorks for $500 million at a healthy 4.4x multiple.

 

Another really rich area, in terms of multiples, is virtualization. 2010 saw a rise in deal volumes as the giants jumped into acquisitions enthusiastically. VMware made several deals for more than $100 million each, Citrix added on three separate companies, including 3Tera for their platform and Nimsoft for their software. This should be another trend to keep watching in 2011.

Posted by , Associate on 28 February 2011
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