transaction activity summary 2 trading analysis 4 ... · cloud security 5% security operations 4%...
TRANSCRIPT
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INVESTMENT BANKING
CYBER SECURITY INSIGHTMERGERS AND ACQUISITIONS, PUBLIC AND PRIVATE FINANCINGS & FINANCIAL ADVISORY SERVICES
IN THIS ISSUE
Transaction Activity Summary 2
Trading Analysis 4
Representative Transactions 10
Recent Transaction Activity 11
About Us 21
Q1 2020
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 2
Q1 2020
Cyber Security Technology M&A & Capital Raising Activity
Number of Deals by Quarter Dollar Volume of Deals by Quarter
Despite volatility Q1’20 deal volume increased by 30% over Q1’19
~$8 billion in Q1’20 in announced transaction value
Source: 451 Research, MergerMarket, and PitchBook.Transaction value largely attributable to Broadcom’s acquisition of Symantec Enterprise Security ($10.7B), and VMware’s acquisition of Carbon Black ($2.1B).Transaction value largely attributable to Francisco Partners’ and Evergreen Coast Capital’s acquisition of LogMeIn ($4.3B) and BC Partner’s Acquisition of Presidio ($2.1B)
($ in USD billions)
53
71
41
92 94
50
34
34
73
40103 105
75
165
134
0
30
60
90
120
150
180
Q1'19 Q2 '19 Q3 '19 Q4 '19 Q1 '20
Private Equity / Venture Capital Strategic
$1
$5
$1
$8
$5 $3
$3
$13
$3
$3
$4
$8
$14
$11
$8
$0
$2
$4
$6
$8
$10
$12
$14
$16
Q1'19 Q2 '19 Q3 '19 Q4 '19 Q1 '20
Th
ou
san
ds
Private Equity / Venture Capital Strategic
(1)
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 3
Q1 2020
Cyber Security Technology M&A & Capital Raising Activity
Q1 2020 Deals by Sector Q1 2020 Deals by Sub-Sector
Companies focused on the Software and IT Services sector comprising ~97% of transactions
announced in Q1 2020
The industry saw a healthy mix of activity across sectors in Q1 2020, with Incident / Threat Analysis,
Network Security and Data Security comprising 55% of all transactions
Source: 451 Research, MergerMarket, and PitchBook.
Incident / Threat Analysis32%
Network Security18%
Identity & Access Management
18%
Web Security8%
Endpoint Security8%
Data Security & Encryption
5%
Cloud Security5%
Security Operations4%
Application Security2%
Software68%
IT Services29%
IT Infrastructure3%
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 4
Q1 2020
8.7x
6.4x
7.9x
6.6x 6.7x6.1x 6.0x
5.4x 5.4x4.5x 4.6x
4.1x 4.2x3.3x 3.1x
2.6x 2.4x1.8x 1.7x
7.6x
6.2x 6.2x5.9x 5.7x 5.3x 5.0x 4.6x 4.6x 4.5x
4.0x3.6x 3.5x 3.1x 2.9x
2.4x 2.2x1.7x 1.6x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
Qualys Check PointSoftware
Splunk SolarWinds VaronisSystems
Fortinet Ping Identity Proofpoint CyberArk NortonLifeLock Mimecast SailPoint Palo AltoNetworks
Trend Micro Radware FireEye Zix Corporation BlackBerry F-Secure
2020E 2021E
Market Valuation Metrics
High Growth Cyber Security TEV / Revenue
Medium / Low Growth Cyber Security TEV / Revenue
1. Zix Corporation’s financials are not pro forma for acquisitions.2. NortonLifeLock’s financials are pro forma for its divestiture. 3. Source: Capital IQ as of 3/31/2020. 4. Note: Medium / low growth comps include companies with 2021E revenue growth of less
than 20%. High growth comps include companies with 2021E revenue growth greater than 20%.
5. Revenue multiples >25.0x. EBITDA multiples <0.0x or >35.0x are considered Not Meaningful (NM).
Medium / Low Growth Cyber Security TEV / EBITDA(5)
(1)
19.1x
15.8x 15.1x
5.5x 4.6x1.9x
14.7x12.2x 11.5x
4.6x 3.8x1.6x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
Okta Zscaler CrowdStrike Rapid7 Tenable Tufin2020E 2021E
NM NM
24.3x 23.2x 23.4x20.2x 20.5x 19.3x 20.0x
13.3x 14.2x 12.4x 10.6x10.3x
NM
12.3x
NM
33.2x
28.1x
19.5x 18.8x 18.5x17.4x 16.4x 15.1x 15.1x
13.0x 12.5x 12.2x 10.2x 9.5x 9.5x9.0x
NM NM0.0x
10.0x
20.0x
30.0x
40.0x
Ping Identity Proofpoint Mimecast Fortinet CyberArk Qualys FireEye Radware Palo AltoNetworks
Check PointSoftware
SolarWinds BlackBerry Trend Micro Zix CorporationNortonLifeLock F-Secure Splunk VaronisSystems
SailPoint
2020E 2021E
(1) (2)
(2)
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 5
Q1 2020
Cyber Security Performance vs. Market
6 Month Price Performance Index
1. Source: Capital IQ as of 3/31/2020.2. Note: Medium / low growth comps include companies with 2021E revenue growth of less than 20%. High growth comps include companies
with 2021E revenue growth greater than 20%.
(14%)
(6%)
16%
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
S&P 500 High Growth Cybersecurity Medium / Low Growth Cybersecurity
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 6
Q1 2020
Cyber Security Performance vs. Market
6 Month TEV / NTM Revenue Multiples
1. Source: Capital IQ as of 3/31/2020.2. Note: Medium / low growth comps include companies with 2021E revenue growth of less than 20%. High growth comps include companies
with 2021E revenue growth greater than 20%.
10.3x
2.3x
4.6x
0.0x
10.0x
20.0x
30.0x
S&P 500 High Growth Cybersecurity Medium / Low Growth Cybersecurity
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 7
Q1 2020
RJ Cyber Security Index Has Developed In Line With Overall Market
3 Month Price Performance Index for Q1 2020
1. Source: Capital IQ as of 3/31/2020.
Observation & Trends
In January and February 2020, the S&P 500 Information Technology (IT) index demonstrated stronger returns compared to the S&P 500 as well as the RJ Cyber index
All indices declined approx. 30-35% since beginning of COVID-19 induced market downturn
Recent weeks have been characterized by high levels of volatility
The RJ Cyber index has performed in line with the overall market
Indices tend to show positive reactions to announcements of countermeasures by governments and central banks
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
S&P 500 S&P 500 IT Cyber Index
(22%)
(21%)(18%)
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 8
Q1 2020
6.10x
4.70x
26.2x
22.8x
EV/ Revenue
Covid Impact: Valuation Multiples Have Contracted
Cyber Security Metrics
1. Source: Capital IQ.2. Note: Multiples refer to median figures.3. Identity Access Management (IAM); Privileged Access Management (PAM).
EV/ EBITDA
(1.4x)
5.60x
3.70x
(1.9x)
7.70x
5.80x
(1.9x)
5.30x
3.70x
(1.6x)
7.30x
5.60x
(1.7x)
6.00x
5.10x
(0.9x)
(3.4x)
31.6x
24.0x
(7.6x)
17.9x
13.8x
(4.1x)
31.3x
25.3x
(6.0x)
Cyber Security
01.02.2020 03.31.2020
NM
NM
Data & Email, Web & Cloud Security
Network Security
Vulnerability Mgmt., Incident &
Threat Analysis
IAM / PAM(3)
Endpoint Security
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 9
Q1 2020
Public Comparables & Precedent Transactions
Source: Capital IQ.Note: Medium / low growth comps include companies with 2021E revenue growth of less than 20%. High growth comps include companies with 2021E revenue growth greater than 20%. (1) Sorted by Market Capitalization.(2) Revenue Multiples >25.0x are considered Not Meaningful (NM).(3) EBITDA multiples <0.0x or >35.0x are considered Not Meaningful (NM).
(4) NortonLifeLock’s financials are pro forma for its divestiture. (5) Zix Corporation’s financials are not pro forma for acquisitions.
($ in millions, except for stock price) TEV YoY
High Growth Cyber Security Revenue(2) EBITDA(3) Revenue Growth EBITDA Margin
Company(1)
Stock Price3/31/2020
MarketCapitalization
Enterprise Value 2020E 2021E 2020E 2021E 2020E 2021E 2020E 2021E
Okta $122.26 $15,010 $14,712 19.1x 14.7x NM NM 31.6% 30.0% (5.8%) 2.6%
CrowdStrike 55.68 11,872 10,960 15.1x 11.5x NM NM 50.6% 31.0% 0.8% 10.2%
Zscaler 60.86 7,872 7,522 15.8x 12.2x NM NM 32.2% 29.5% 7.2% 10.4%
Rapid7 43.33 2,176 2,201 5.5x 4.6x NM NM 21.4% 21.0% 5.0% 8.1%
Tenable 21.86 2,173 2,007 4.6x 3.8x NM NM 23.0% 22.2% (6.1%) (1.5%)
Tufin 8.78 312 218 1.9x 1.6x NM NM 9.8% 20.1% (24.4%) (13.6%)
High Growth Median 10.3x 8.1x NM NM 27.3% 25.9% (2.5%) 5.3%
TEV YoY
Medium / Low Growth Cyber Security Revenue(2) EBITDA(3) Revenue Growth EBITDA Margin
Company(1)
Stock Price3/31/2020
MarketCapitalization
Enterprise Value 2020E 2021E 2020E 2021E 2020E 2021E 2020E 2021E
Splunk $126.23 $20,023 $20,262 7.9x 6.2x NM NM 9.4% 27.0% 4.2% 14.2%
Fortinet 101.17 17,453 15,434 6.1x 5.3x 23.2x 18.8x 16.8% 15.7% 26.4% 28.2%
Palo Alto Networks 163.96 16,348 15,083 4.2x 3.5x 20.0x 15.1x 16.4% 18.6% 20.7% 23.3%
Check Point Software 100.54 14,629 13,049 6.4x 6.2x 13.3x 13.0x 1.9% 3.3% 48.1% 47.9%
NortonLifeLock(4) 18.71 11,233 11,057 4.5x 4.5x NM 9.5x 1.0% (0.8%) 28.4% 47.5%
Trend Micro 49.63 6,907 5,304 3.3x 3.1x 10.6x 10.2x 6.2% 4.8% 31.0% 30.9%
Proofpoint 102.59 5,848 5,763 5.4x 4.6x NM 28.1x 19.1% 18.5% 13.3% 16.4%
SolarWinds 15.67 4,879 6,726 6.6x 5.9x 14.2x 12.5x 10.0% 11.1% 46.3% 47.4%
Qualys 86.99 3,401 3,154 8.7x 7.6x 20.2x 17.4x 13.0% 14.5% 43.0% 43.4%
CyberArk 85.56 3,262 2,707 5.4x 4.6x 23.4x 18.5x 15.7% 17.7% 23.0% 24.7%
FireEye 10.58 2,320 2,380 2.6x 2.4x 20.5x 16.4x 4.7% 7.3% 12.5% 14.5%
BlackBerry 4.07 2,256 2,083 1.8x 1.7x 12.4x 12.2x 12.1% 10.0% 14.8% 13.7%
Mimecast 35.30 2,207 2,258 4.6x 4.0x 24.3x 19.5x 20.1% 17.3% 19.1% 20.3%
Varonis Systems 63.67 1,949 1,893 6.7x 5.7x NM NM 11.0% 17.0% (7.0%) (0.5%)
Ping Identity 20.02 1,596 1,580 6.0x 5.0x NM 33.2x 9.3% 18.1% 10.8% 15.2%
SailPoint 15.22 1,370 1,278 4.1x 3.6x NM NM 8.7% 13.8% 2.0% 6.5%
Radware 21.07 988 829 3.1x 2.9x 19.3x 15.1x 6.1% 8.6% 16.1% 18.9%
F-Secure 2.61 412 430 1.7x 1.6x 12.3x 9.0x 4.1% 6.8% 13.8% 17.7%
Zix Corporation(5) 4.31 232 518 2.4x 2.2x 10.3x 9.5x 24.0% 11.6% 23.3% 22.6%
Medium / Low Growth Median 4.6x 4.5x 19.3x 15.1x 10.0% 13.8% 19.1% 20.3%
Overall Median 5.4x 4.6x 19.3x 15.1x 12.1% 17.0% 13.8% 16.4%
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CYBER SECURITY INSIGHT Q1 2020
April 2019
Representative Raymond James Infrastructure & Security Transactions
View our full transaction history here >
January 2019
July 2019 June 2019
Capital Raises
Sale / Recapitalizations
(1) Total deal value includes overallotment
February 2019
September 2019
$188 MillionInitial Public Offering
Identity Access Management
September 2019
$745 MillionInitial Public Offering
Monitoring and Analytics Platform
April 2018
$169 MillionInitial Public Offering
Next Gen CDN and Security Provider
February 2020
$681 MillionFollow-On Offering
Software Intelligence Platform
August 2017
Product Information Management Security Operations and Analytics Platform Critical Communication and Data Platform Automated Business Management Platform
Master Data Management Software Identity Authentication Software End-to-End Cyber Security Solutions and Service Provider
Device-Based Fraud Prevention Network
Regulatory Compliance Provider Facility Security Hardware and Components Cyber Security Consulting IoT PaaS Provider
November 2018 July 2018
January 2018 July 2017October 2017
February 2019
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 11
Q1 2020
Cyber Security: Selected Recent M&A Activity
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Mar-20 Software Web Security M&A -Developer of cybersecurity software designed to thwart
sophisticated web-based malware attacks
Mar-20 IT ServicesNetwork
SecurityM&A -
Developer of products focused on enabling other vendors'
security/systems/network management software to work
in and around secure areas
Mar-20 SoftwareSecurity
OperationsM&A -
Provider of data transformation services across
government and corporate enterprises
Mar-20 Software
Identity &
Access
Management
M&A $529.2
Developer of a SaaS fraud prevention and identity
verification technology designed to make transactions
easier and secure
Mar-20 IT ServicesApplication
SecurityM&A -
Provider of comprehensive solutions for application
security testing and application layer attack prevention
Mar-20 SoftwareEndpoint
SecurityM&A -
Provider of advanced cybersecurity solutions; offers user-
centric security products and services for protecting
people, devices and networks
Mar-20 IT ServicesNetwork
SecurityM&A 136.3
Provides technical and cyber defense consultancy
services for cyber security market
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 12
Q1 2020
Cyber Security: Selected Recent M&A Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Mar-20 SoftwareEndpoint
SecurityM&A - Provider of cloud-based cybersecurity solutions
Mar-20 SoftwareIncident/
Threat AnalysisM&A -
Developer of adversary simulations software intended to
offer security assessments that replicate the techniques
of an advanced adversary in a network
Mar-20 SoftwareIncident/
Threat AnalysisM&A -
Developer of hardware accelerated technology designed
to offer security analytics acceleration
Feb-20 IT ServicesIncident/
Threat AnalysisM&A -
Provider of advanced threat detection solution built for
Small and Medium Businesses (SMBs) and the service
providers that support them
Feb-20 IT ServicesNetwork
SecurityM&A $2,115.2
Provider of intelligence-driven cyber threat detection and
response, identity and access management and risk and
compliance solutions
Feb-20 IT ServicesIncident/
Threat AnalysisM&A 78.4
Provider of information technology security services;
enables organizations to protect critical online portals,
applications and networks
Feb-20IT
Infrastructure
Incident/
Threat AnalysisM&A 60.67
Provider of automatic detection and safe mitigation of
drone intrusions in enterprise and urban environment
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 13
Q1 2020
Cyber Security: Selected Recent M&A Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Feb-20 Software
Identity &
Access
Management
M&A -Developer of a mobile biometric authentication platform
designed to accurately authenticate customers
Feb-20 SoftwareData Security
& EncryptionM&A $8.0
Developer of cybersecurity technologies for consumers,
corporations, and public-sector
Feb-20 IT ServicesEndpoint
SecurityM&A 1,492.4
Provider of automated security control solutions; it’s
products deploy quickly with agentless, real-time
discovery and classification of every IP-connected device
Feb-20 IT ServicesIncident/
Threat AnalysisM&A -
Provider of cybersecurity incident response and digital
forensics consultancy service
Feb-20 Software Cloud Security M&A -
Provider of standardized and accelerated service
authentication across cloud, container and on-premise
infrastructures
Feb-20 SoftwareIncident/
Threat AnalysisM&A -
Provider of a security-as-a-service platform intended to
offer cyber security and GDPR compliance services
Jan-20IT
Infrastructure
Security
OperationsM&A 1,819.3
Provider of a satellite imaging platform; supports remote
sensing and communications payloads
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 14
Q1 2020
Cyber Security: Selected Recent M&A Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Jan-20 Software
Identity &
Access
Management
M&A $413.5Provider of identity risk and fraud management services
intended to offer credit and fraud risk services
Jan-20 IT Services Cloud Security M&A 85.0Provider of cloud technology, cyber security, agile, and
DevOps services and solutions
Jan-20 SoftwareIncident/
Threat AnalysisM&A -
Developer of cyber security platforms designed to
improve situational awareness and maximize resources
with advanced technologies
Jan-20 SoftwareSecurity
OperationsM&A -
Provider of risk and vendor management software and
services to financial institutions and other organizations
Jan-20 SoftwareIncident/
Threat AnalysisM&A -
Provider of managed detection and response services;
focuses on the detection of, and response to, threats
within the network
Jan-20 SoftwareIncident/
Threat AnalysisM&A - Provider of internet scanning and cybersecurity services
Jan-20 Software Cloud Security M&A -Developer of a cloud security platform designed to offer
email security
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 15
Q1 2020
Cyber Security: Selected Recent M&A Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Jan-20 SoftwareIncident/
Threat AnalysisM&A -
Developer of security software designed to secure the
most important U.S. defense assets
Jan-20 SoftwareIncident/
Threat AnalysisM&A -
Developer of website and application programming
interface (API) security software
Jan-20 IT ServicesSecurity
OperationsM&A -
Developer of browser isolation technology intended to
improve the web browsing experience
Jan-20 IT ServicesNetwork
SecurityM&A -
Developer and marketer of online vendor security
assessment solutions
Jan-20 SoftwareNetwork
SecurityM&A -
Provider of encryption, antivirus and malware protection
and identity protection and authentication
Jan-20 IT Services Web Security M&A $38.7Developer of patented browser isolation technology to
make everyday web browsing safer and faster
Jan-20 SoftwareIncident/
Threat AnalysisM&A 34.5
Provider of digital threat protection and anti-phishing
services
(Business Unit)
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 16
Q1 2020
Cyber Security: Selected Recent Financing Activity
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Mar-20 SoftwareData Security
& EncryptionFinancing $15.7
Provider of mobile and enterprise data security solutions
to meet the security needs of large organizations in
various industries
Mar-20 SoftwareApplication
SecurityFinancing 11.0
Developer of a continuous Security-as-a-Service platform
intended to orchestrated risk management
Mar-20 Software Cloud Security Financing 7.9
Developer of internet and cloud security software;
protects from phishing, malicious crawlers and
transaction fraud
Mar-20 SoftwareEndpoint
SecurityFinancing 3.5
Developer of ID-based connectivity and access control
software designed to offer cybersecurity services
Mar-20 SoftwareNetwork
SecurityFinancing 21.5
Developer of a platform designed to simplify local
networks, cloud infrastructures and business applications
Mar-20 SoftwareSecurity
OperationsFinancing 44.1
Developer of a cyber risk analytics platform designed for
the insurance industry
Mar-20 Software
Identity &
Access
Management
Financing 89.3
Developer of an artificial intelligence-driven authentication
platform designed to provide secure and adaptive
authentication services
Qiushi Capital
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 17
Q1 2020
Cyber Security: Selected Recent Financing Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Mar-20 IT Services Cloud Security Financing $5.5Provider of cloud-based B2B email security, compliance
and encryption products
Mar-20 SoftwareData Security
& EncryptionFinancing 15.8
Developer of information security technology designed for
IoT security and big data security
Mar-20 SoftwareNetwork
SecurityFinancing 15.8
Developer of a network information security system
designed to protect the security of user applications, data
access and use in the cloud
Mar-20 SoftwareIncident/
Threat AnalysisFinancing 55.1
Developer of cloud-based security software designed to
detect mobile threats and improve mobile security
Mar-20 SoftwareData Security
& EncryptionFinancing 3.9
Developer of a consumer privacy management software
platform designed to manage sensitive data
Feb-20 SoftwareNetwork
SecurityFinancing 5.1
Developer of a network security platform designed to
automatically defines, enforces and adapts user- and
machine-level network access policies
Feb-20 SoftwareEndpoint
SecurityFinancing 204.2
US-based provider of autonomous endpoint protection
that prevents, detects, responds, and hunts attacks
across all major vectors
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 18
Q1 2020
Cyber Security: Selected Recent Financing Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Feb-20 SoftwareData Security
& EncryptionFinancing $11.0
Provider of a data security platform designed to offer
nation-state level privacy-preserving protection to the
global marketplace, allowing users to securely operate on
data in the cloud
Feb-20 IT ServicesIncident/
Threat AnalysisFinancing 19.8
Provider of managed detection and response services
intended for managed service providers and value-added
resellers
Feb-20 SoftwareIncident/
Threat AnalysisFinancing 4.7
Developer of a blockchain-based security software
designed to assess and eliminate threats using
blockchain
Feb-20 SoftwareIncident/
Threat AnalysisFinancing 3.3
Developer and provider of cybersecurity technology that
provides threat visibility and intelligence products and
services
Feb-20 SoftwareNetwork
SecurityFinancing 5.4
Provider of cyber security services intended to solve
complex cyber security challenges and secure innovation
Feb-20 SoftwareData Security
& EncryptionFinancing 39.7
Developer of a data leak detection system designed to
offer data security to companies
Feb-20 Software Cloud Security Financing 9.9Developer of a cloud-based platform designed for backup
and recovery needs of large enterprises
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 19
Q1 2020
Cyber Security: Selected Recent Financing Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Feb-20 SoftwareData Security
& EncryptionFinancing $4.5
Developer of data security software built for preventing
cybercrime
Jan-20 SoftwareIncident/
Threat AnalysisFinancing 33.1
Operator of a cloud-based patch management platform
designed to automate the patching, configuration and
maintenance of Windows, OS X and Linux systems
Jan-20 SoftwareData Security
& EncryptionFinancing 8.3
Developer of artificial intelligence-powered data sensitivity
and risk discovery platform designed to resolve the data
security challenges
Jan-20 Software
Identity &
Access
Management
Financing 19.3Developer of identity verification systems designed to
protect and secure identity from theft and fraud
Jan-20IT
Infrastructure
Identity &
Access
Management
Financing 10.8
Developer of facial recognition and identification
technology created to solve security loopholes in
companies
Jan-20 Software
Identity &
Access
Management
Financing 13.2
Developer of a SaaS-based cloud security platform for
identity authorization administration across hybrid cloud
environments
Jan-20 SoftwareData Security
& EncryptionFinancing 55.1
Developer of an artificial intelligence powered
cybersecurity and data protection platform intended to
protect privacy
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 20
Q1 2020
Cyber Security: Selected Recent Financing Activity (Cont’d)
ANNOUNCED DATE
BUYER / LEAD
INVESTORTARGET
TARGET COUNTRY
BUSINESS MODEL
SECTORTRANSACTION
TYPETRANSACTION
SIZE ($M)TARGET DESCRIPTION
Jan-20 SoftwareApplication
SecurityFinancing $7.7
Developer of a cybersecurity software intended for
server-side application security
Jan-20 SoftwareData Security
& EncryptionFinancing 11.0
Developer of digital asset management platform designed
to provide information security protection and data
encryption
Jan-20 SoftwareIncident/
Threat AnalysisFinancing 47.4
Developer of security software that integrates prediction,
prevention, detection and response capabilities
Jan-20 IT ServicesIncident/
Threat AnalysisFinancing 15.8
Developer of information security technology designed to
provide industry-wide threat protection solutions
Jan-20 IT ServicesIncident/
Threat AnalysisFinancing 5.3
Provider of managed security services intended to help
businesses consolidate all of their regulatory compliance
& cybersecurity needs
Jan-20 SoftwareData Security
& EncryptionFinancing 14.3
Developer of security technology designed to provide
data security and privacy protection
Jan-20 IT ServicesApplication
SecurityFinancing 3.3
Provider of cybersecurity awareness training and phishing
simulation platform intended to train enterprise
employees
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 21
Technology & Services Investment Banking
As the leading Technology & Services Investment Banking practice in the market,
our team is committed to delivering innovative solutions and premier results
for our clients across several sub-sectors.
If you have any questions about thedata in this newsletter, please contact
UNITED STATES
BOB FLANAGANManaging [email protected]
BOBBY [email protected]
LONDON
DOMINIC EMERYManaging [email protected]
JOEL GREENWOODManaging [email protected]
MUNICH
PHILIP STEINManaging [email protected]
EMANUEL BISCHOFBERGERDirector+49.89.232377.47emanuel.bischofberger@raymondjames.com
Infrastructure Tech-Enabled
Services
Software Financial
Technology
Services
75+ Investment Banking Professionals (U.S.)
8Global Offices (North America, Europe, Asia)
25+ Senior Bankers (U.S.)
20+ Year Track Record
~330 M&A Advisory and Private Placement Transactions Since 2012
190+Public Equity and Debt Offerings Since 2012
By the Numbers
ADVISORY
Investment Banking Capabilities
• Sales / Recaps
• Acquisitions
• Divestitures
• Strategic Advisory
• Fairness Opinions
• Private Placements
• Initial Public Offerings
• Follow-On Offerings
• Debt Capital
• Restructuring
CAPITAL RAISING
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CYBER SECURITY INSIGHT
RAYMOND JAMES INVESTMENT BANKING 22
Q1 2020
Raymond James Overview
Raymond James
Equity Capital Markets(1)
• Full-service financial services firm with investment banking, equity research, institutional sales and trading, and asset management operations
– Founded in 1962; public since 1983 (NYSE: RJF)
– $7.7 billion in FY 2019 net revenue; equity market capitalization of $11.4 billion
– Stable and well-capitalized platform
• Industry-focused, knowledge-driven approach, backed by highly-ranked equity research team
• 28 domestic and international investment banking and institutional sales offices
• International operations in Brussels, Buenos Aires, Düsseldorf, Geneva, London, Munich, Paris, Sao Paulo, Toronto and Vancouver
• Acquisition of Morgan Keegan consolidated and strengthened Raymond James’ leadership in the middle market
• Acquisition of Mummert & Co. strengthened Raymond James’ European presence, furthering international expansion and growing cross-border transaction expertise
• Over 600 Equity Capital Markets professionals; over 330 investment bankers in the U.S.
• Global sales force with over 90 professionals
• Bulge-bracket distribution capability
• Approximately 33% of all institutional equity commissions are generated outside of the U.S.
• Over 8,000 financial advisors; offices in all 50 statesGreenwich Associates ranked
#2 in overall quality of analyst service(2)
1. As of March 2020.2. Criteria for the awards can be found at https://www.raymondjames.com/about-us/accolades.
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CYBER SECURITY INSIGHT Q1 2020
Notes & Disclosures
Sources of data include Capital IQ, FactSet and other news organizations.
Information obtained from third-party sources is considered reliable, but
we do not guarantee that the information herein is accurate or complete.
This report was prepared within Raymond James & Associates’ Investment
Banking Department and is for information purposes only. This report is
not a product of Raymond James & Associates’ Research Department;
recipients of this report should not interpret the information herein as
sufficient grounds for an investment decision or any other decision. The
report shall not constitute an offer to sell or the solicitation of an offer to
buy any of the securities mentioned herein; past performance does not
guarantee future results. Any performance mentioned does not include
transaction fees and costs which would reduce an investor’s return. An
investment cannot be made directly in a market index.
This presentation includes logos or other words or devices that may be
registered trademarks of their respective owners. Such use is solely for
purposes of convenience in referring to the trademark owners and their
products/services. This presentation and its contents are not endorsed,
sponsored or affiliated with any trademark owner. Raymond James &
Associates, Inc. and its affiliates are not affiliated with any trademark
owner but may provide certain financial services to one or more
trademark owners or their affiliates.
Additional information is available upon request.
© 2020 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. Raymond James® is a registered trademark of Raymond James Financial, Inc.
INVESTMENT BANKING
EBITDA: Earnings Before Interest, Taxes, Depreciation and AmortizationEPS: Earnings per ShareLTM: Last Twelve MonthsNA: Not ApplicableNM: Not MeaningfulPE: Price Earnings RatioTEV: Total Enterprise Value