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Government Providers Dominate Cybersecurity M&A Roundup for Week of Feb. 1, 2021

Cybersecurity acquisitions February 2021

Several mergers and acquisitions were announced in the first week of February 2021, and a majority of the companies provide services to government organizations — some of them exclusively to this sector.

Akamai acquires Inverse

CDN services provider Akamai has acquired Montreal-based Inverse, a company that provides solutions designed to help organizations identify IoT, mobile and other types of devices. Akamai is hoping that the deal will help it enhance enterprise security capabilities and expand its portfolio of zero trust and SASE solutions for IoT. Financial terms were not disclosed, but Akamai said it was an all-cash transaction.

Aprio acquires Syzygy Solutions and Velossent

Business advisory firm Aprio announced buying Syzygy Solutions, which specializes in cybersecurity consulting and digital transformation, as well as its IT staffing company Velossent. Aprio said Syzygy’s solutions complement its own services. Velossent specializes in the placement of developers, engineers, technology leaders and recruiters, and following its acquisition by Aprio it will expand to accounting and finance staffing.

Guardforce AI acquires Handshake Networking

Asian integrated security solutions provider Guardforce AI acquired a majority stake in Handshake Networking, a company based in Hong Kong that provides penetration testing, vulnerability assessment, auditing, consultancy, forensics and training services. A few months ago, the companies announced teaming up for a cyber risk assessment service.

HelpSystems acquires Digital Defense

IT management software solutions provider HelpSystems announced the acquisition of Digital Defense, a company that provides threat assessment and vulnerability management solutions. HelpSystems said Digital Defense will join Core Security and Cobalt Strike in an effort to provide a comprehensive security assessment toolkit.

IntelliBridge acquires Alethix

IntelliBridge, which provides tech (including cybersecurity), intelligence and mission support services to government organizations, acquired Alethix, which provides IT solutions to a dozen U.S. federal agencies. IntelliBridge hopes the deal will help it strengthen its technology portfolio with cloud and DevSecOps solutions.

IntelliGenesis acquires CybatiWorks

IntelliGenesis, a company that provides intelligence, data science, cyber training, and cyber operations services to the U.S. Defense Department and intelligence agencies, announced the acquisition of CybatiWorks, which provides training and consulting services to organizations in the government, commercial, and academia sectors. IntelliGenesis said the deal should strengthen the nation’s cyber-physical capabilities for critical infrastructure, industrial control systems (ICS) and IoT.

IST Research merges with Two Six Labs

An affiliate of global investment firm The Carlyle Group has acquired data analytics and tech company IST Research and Two Six Labs, which provides analytics and cyber security services to the Pentagon, intelligence agencies and others in charge of U.S. national security. IST Research and Two Six Labs will merge into Two Six Technologies, which will provide cybersecurity and advanced technology solutions for national security customers.

SageNet acquires Convergent

Managed network services and cybersecurity firm SageNet acquired Convergent, which provides digital signage products and services to government organizations and private sector companies. Convergent will be branded “Convergent, a SageNet Company” and both companies will operate as usual while they work on integrating their solutions.

Sontiq acquires Cyberscout

Intelligent identity security firm Sontiq has acquired Cyberscout, a company that provides cyber products and services that are tailored for the insurance industry. Sontiq hopes the deal will help it improve its products and enable it to expand into the insurance industry.

WISeKey acquires arago

Swiss cybersecurity and IoT company WISeKey is acquiring arago, a Germany-based firm whose AI-based solutions help businesses automate their IT processes. WISeKey hopes the resulting company will become a “leader in the cybersecurity AI-powered knowledge automation market.” Arago has been valued at roughly CHF 100 million (USD 110 million).

Related: Root9B, Fidem in Cybersecurity M&A Round-Up for January 2021

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Eduard Kovacs (@EduardKovacs) is a contributing editor at SecurityWeek. He worked as a high school IT teacher for two years before starting a career in journalism as Softpedia’s security news reporter. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.