The Deal’s Chris Nolter has been closely monitoring ongoing consolidation among cyber security groups as these companies try to keep pace with hackers’ evolving tactics. According to 451 Research, there were 82 security deals totaling $6.62 billion through the end of July, putting the sector on pace to top last year’s record-setting total of 106 deals valued cumulatively at $5.44 billion. Dougherty & Co. analyst Catharine Trebnick called the whole security space fragmented. 451 Research lists close to 1,200 independent security companies, suggesting a slew of potential targets. She suggested that FireEye Inc. and Palo Alto Networks Inc could emerge as consolidators. Symantec Corp., which announced its $8 billion sale of its Veritas storage unit to a group led by Carlyle Group last week, will also be likely to use some of its proceeds to make acquisitions. FireEye acquired forensic security group Mandiant Corp. for $1 billion last year. Mandiant comes in after an attack, and recommends which security options a company should deploy. ‘They are really using the Mandiant piece as a Trojan horse,’ Trebnick said. CyberArk Software Ltd. (CYBR), which manages network access privileges, also could fit into FireEye’s sales strategy.
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