Could Security Concerns Scuttle M&A And Investment Deals?

Scott L. Vernick was quoted in the Dark Reading article, "Could Security Concerns Scuttle M&A and Investment Deals?" Full text can be found in the April 6, 2015, issue, but a synopsis is below.

Last week's breach of a communication software startup offered a glimpse as to why information security is not just a big consideration for business partners and customers, but for potential investors and acquiring companies as well.

The breach occurred just after the company was raising up to $160 million in investments.

It is unclear whether the company discovered the breach or if new investors were told of it before they agreed to the deal, but one thing that is for sure is that as large-scale breaches continue to gain awareness in the board room, mergers and acquisitions and other investment deals may begin to include security contingencies to cover investors.