August 29, 2016

Mergers and security: A major concern

Cybersecurity prowess may play a role in merger decisions.

Online security issues continue to impact more aspects of business. One consideration companies may need to remember is the importance of online security during business mergers.  USA Today recently posted about the "merger mania" sweeping the tech world today. In this climate, businesses storing sensitive data, need to keep security protocols consistent.

The speed of these acquisitions, which the source described as a "flurry," shouldn't distract businesses from necessary security tasks, but can underscore their importance. The source quoted Apple's CEO Tim Cook, who commented on the company's plans last month.

"We look for great talent and intellectual property, and we have been buying companies every three to four weeks and continue to do that," Cook said.

CSO Online recently looked at the way cybersecurity concerns can play a role during an important deal. Actual cybersecurity skills are lacking in these transactions, a stark contrast to the importance companies give these issues, the article said.

Bloomberg BNA recently mentioned the coming merger between Verizon and Yahoo, which may bring online security concerns, due to the major cultural differences between the two companies.. This deal has not been finalized yet but is expected to occur by March 21 next year. 

CrowdStrike Inc.'s Shawn Henry recently spoke to Bloomberg about the importance of acquisitions cybersecurity, saying that the acquisition should be a chance for businesses to look at cybersecurity closely. While he didn't comment on the Verizon/Yahoo deal specifically, he did mention the need for both parties in a deal to look closely at current security standards. 

Small and medium-sized businesses may make up the majority of those exposed to cyberbreach risks. According to PropertyCasualty360, Cyber Insurance's Timothy Francis recently claimed that these groups make up 62 percent of all online breach victims.