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ARTICLE · 24 OCTOBER 2019

Emerging Trends In Information Technology (IT) Mergers And Acquisitions

Canada's burgeoning information technology (IT) sector is a standout in the Canadian mergers and acquisitions landscape.

CanadaCorporate/Commercial Law

Canada's burgeoning information technology (IT) sector is a standout in the Canadian mergers and acquisitions landscape. A recent report by Duff & Phelps illustrates that in the first half of 2019, IT was the third most active deal-making sector in Canada with over 104 closed transactions. Against this backdrop, three trends emerge:

  • 'Buying into' privacy or cybersecurity risk. Buyers are becoming increasingly aware of the importance of conducting rigorous due diligence on a target company's privacy and cybersecurity systems and practices. Marriott's data breach in 2018, where about 383 million guest records globally were exposed to cybercriminals, highlights this. The Marriott breach occurred on IT infrastructure Marriott inherited through its acquisition of the Starwood hotels group in 2016. The vulnerability arose in 2014 when the Starwood hotels group's IT systems were compromised by malware installed by cybercriminals. However, the exposure of customer

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