Companies are facing intensifying cybersecurity threats, expanding compliance complexities, and greater third-party risk—all while the cost of failure is increasing. Together, these factors are driving innovation and a range of investable opportunities throughout the space.

Our recent client, HITRUST, is a prime example, helping solve these challenges through an integrated framework, assessment, and certification platform that gives organizations confidence in their cybersecurity, compliance, and risk management programs.

Below, our Technology Group discusses five themes generating M&A potential across this ecosystem and why HITRUST captured investor attention.

HITRUST: Putting the Best Systems in Place

By aligning to these burgeoning cybersecurity and information risk themes, HITRUST gained strong investor appeal. Harris Williams advised HITRUST on its recent growth investment from Brighton Park Capital.

Through its comprehensive risk management and compliance frameworks, HITRUST provides an array of controls and guidelines that minimize risk exposure throughout an organization and its third-party network. “HITRUST’s proprietary software and technology connects all of a company’s stakeholders—including customers, vendors, shareholders, and regulators—at every stage of its cybersecurity and information risk management journey,” says Naithani. “The company’s established framework and assurance methodology also continues to evolve and adapt to address dynamic cybersecurity information risk priorities.”

Going forward, HITRUST is well-positioned to maintain its market leadership and growth by capitalizing on significant opportunities in the space. A great example is the proliferation of AI. “AI technologies pose new and unique risks that can’t be met by traditional security approaches,” says Titterington. “HITRUST is poised to offer AI risk management expertise and new assessment capabilities to guide responsible and trustworthy AI use.”

In addition, the business will continue to leverage its infrastructure and data to power greater collaboration across assessed entities, relying parties, assessors, telemetry providers, and certification bodies, especially in industries and geographies with steep assurance needs. “HITRUST will expand on its success in healthcare by entering other highly regulated verticals and new international markets,” says Linsalata. “We’re excited for the company to extend its footprint and range of services while capturing more market share.”

Mitigating Risk in an Evolving Landscape

Increasingly sophisticated security threats, constant regulatory changes, and rapid technology evolution and adoption are creating complex challenges for companies. These themes are generating an expanding set of investment opportunities within the cybersecurity, compliance, and information risk management ecosystem.

“Innovative businesses will continue to take advantage of an accelerating need for comprehensive cybersecurity and risk mitigation,” says Naithani. “Leading platforms like HITRUST are perfect examples, and we look forward to watching similar companies garner strong investor interest.”

To discuss M&A opportunities across this space, please contact our senior professionals.