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Cybersecurity IPOs: two biggies to report... for now

Steve Morgan | Aug. 19, 2015
Rapid7 and Sophos go IPO while many cybersecurity firms pursue M&A and investments.

Earlier this year Bloomberg reported that log and event management vendor LogRhythm, and email security vendor Mimecast, are planning to go public in 2015.

Last month BetaBoston reported that Bit9 + Carbon Black, an endpoint protection vendor, was beefing up its executive ranks for a possible IPO later this year.

Out of the group of potential IPOs for later this year, SecureWorks looks like the strongest.

SecureWorks plays in managed security services which is expected to grow from $8 billion in 2015 to $30 billion by 2020, according to Allied Market Research (ARM).  They also provide consulting services around GRC - Governance, Risk and Compliance, as well as a portfolio of products and professional services that span multiple security sectors.  The SecureWorks platform should naturally expand for products and services from new acquisitions to neatly plug in.

You have to be a little concerned about the prospects for the others-- as each one of them is more of a point-solution vendor.  Do any of them have a large enough T.A.M. (total addressable market) to pursue an IPO?  Time will tell.. but don't be surprised if you see one or more of them winding up in M&A transactions.

We'll be back for a year-end cybersecurity IPO update towards the end of this year.


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