Cybersecurity

Cyber-risk gold standard is CEOs’ next headache

3 Mar 2023

With hacking on the rise, US regulators are set to force listed groups to swiftly reveal IT breaches, and how to fend off future ones. That will likely prompt laggard Europe to follow suit. Investors could start applying valuation discounts to those lacking apt cyber defences.

TCI’s Airbus fury may have collateral benefit

22 Feb 2023

Hedgie Chris Hohn says the plane maker’s plan to buy a 30% stake in Atos’s cyber arm will destroy value. He’s probably right, but private investors take a back seat in defence deals, where governments call the shots. His salvo might however help Airbus drive a harder bargain.

New threats will corrode infrastructure M&A

30 Dec 2022

Blasts that damaged Baltic pipelines in September alerted investors to the physical risks to energy networks from geopolitics. Add growing cyber concerns and the cost of insurance is set to rise. As the appeal of formerly quasi risk-free bets dims, states will surely step in.

New deals put equity back into private equity

12 Oct 2022

Vista unveiled a $4.6 bln takeover of KnowBe4 while Thoma Bravo is paying $2.3 bln for ForgeRock. There’s precious little detail about the financing for either security software developer, but both transactions offer hints about how buyout firms will navigate tight debt markets.

Wall Street sends regulators a poop emoji

28 Sep 2022

Eleven firms have paid $1.8 billion in fines for employees’ unapproved use of platforms like WhatsApp. The rules may have been hard to enforce. But the response — to collectively flout them at every level — is alarming. Meanwhile the mass fine looks essentially toothless.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.

Darktrace buyout offers road to debug governance

16 Aug 2022

Thoma Bravo is mulling an offer for the $4 bln cyber firm. Close links to investor Mike Lynch, who faces U.S. fraud charges, may explain its discount to peers. Given that a new owner could hike the valuation by untangling those links, Darktrace owners should demand more upfront.

Thoma Bravo pulls out its inflation-era playbook

3 Aug 2022

The private equity firm’s purchase of security software maker Ping Identity for $2.4 bln fits the thesis behind many of Thoma Bravo’s recent deals: Companies that are expanding can still use stern cost discipline. The question is whether cuts come at the expense of future growth.

Capital Calls: UK antitrust watchdog/M&A

3 Aug 2022

Concise views on global finance: The Competition and Markets Authority’s change of heart over NortonLifeLock’s 6.2 bln pound takeover of UK group Avast was an opportunity for bold investors.

Hackers turn crypto’s strength into Achilles heel

30 Mar 2022

Attackers stole $540 mln from a blockchain linked to an online game. Theft is growing as developers roll out untested new blockchain products with shaky security. So-called decentralised finance makes it easy to create new crypto services, but criminals are mopping up the spoils.

Google deal is a step on long road to cloud parity

8 Mar 2022

The Alphabet unit is acquiring cybersecurity bona fides with its $5 bln purchase of Mandiant. This will bolster its cloud platform but Microsoft, a leader in the field, is already ahead in security and has other potential acquisition targets. Catching up will require more work.

West’s best cyber move is to stick to defence

3 Mar 2022

Malware attacks on Ukrainian banks and state agencies make better protection for governments and companies essential. Western nations may consider retaliation. Given the shortage of cyber experts and the risk of badly targeted strikes, they’d be better off focusing on defence.

Hot war may get hotter through cyber battles

22 Feb 2022

Harsh Russian sanctions for invading Ukraine could cause collateral damage. As payback, Moscow may hack American energy firms and banks. U.S. agencies are shoring up cyber capabilities. But hackers only need to be lucky once, and retaliation leaves companies in the crossfire.

Spending bitcoin is harder than stealing it

9 Feb 2022

Cryptocurrency crime is soaring. But the seizure by U.S. authorities of bitcoin worth $3.6 bln, six years after the theft, shows it’s difficult to turn stolen tokens into cash. Anonymous transactions leave a clear trail. Even if the boom fades, the pursuit of thieves will go on.

Capital Calls: Playtech breakup

3 Feb 2022

Concise views on global finance: After investors rejected a 3.2 bln euro buyout offer from rival Aristocrat, a breakup of the gambling software maker looks the best way to maximise value.

Capital Calls: Darktrace’s stock wobble

1 Nov 2021

Concise views on global finance: The UK cybersecurity group’s share plunge reflects both short- and longer-term problems.

French cloud IPO is a bet on EU tech sovereignty

5 Oct 2021

OVHcloud is listing in Paris for up to 3.7 bln euros. Slow growth and the tight grip of founder Octave Klaba justify the IT group’s low valuation. But sales could surge if European businesses and governments push to keep data at home rather than with Amazon, Google or Microsoft.

Capital Calls: Microsoft’s buyback, Railway M&A

15 Sep 2021

Concise views on global finance: the software giant’s $60 bln stock repurchase plan is smaller than it sounds; meanwhile, a tangled takeover battle for train operator Kansas City Southern takes a messy new track.

Norton’s UK cyber raid yields risky bounty

11 Aug 2021

U.S. internet security firm NortonLifeLock has snapped up London-listed Avast for up to 6.2 billion pounds. The premium looks measly and cost savings meaty. But what appears to be a treasure trove for Norton CEO Vincent Pilette comes with long-term competitive threats.

IPO U-turn is probably Didi’s most sensible route

29 Jul 2021

The beleaguered $40 bln Chinese ride-hailing group denied a report that it plans to go private a month after its U.S. debut. Changing course would be embarrassing and quite costly. But it may be the best way to get back in Beijing’s good graces amid a continuing crackdown.