Darktrace AI Technology Now Applied to Merger & Acquisition Cyber Security Due Diligence Process

MACOM Proactively Manages Cyber Risk During M&A Deal

San Francisco, CA
Wednesday June 21, 2017

Darktrace, the leader in Enterprise Immune System technology, today announced that corporations are increasingly using its self-learning AI technology to conduct cyber security due diligence before, during, and after merger & acquisition (M&A) processes. Leading the charge, MACOM is the first company to use Darktrace’s technology to conduct cyber due diligence during its acquisitions. Founded in 1950, MACOM is one of the world’s leading companies in the semiconductor industry, manufacturing and supplying over 3,500 products across 40 different product lines.

Mergers and acquisitions present a unique cyber challenge: it has become critical for companies to add cyber assessment both to the pre-acquisition checklist and during the merging of the two companies’ networks. One critical aspect of cyber due diligence is ensuring that the target company’s intellectual property and “know-how” have not been compromised or copied by a potential competitor or nation-state. Darktrace’s AI technology can evaluate whether a threat-actor is entrenched in the network without necessarily removing the data.

“In today’s cyber environment, companies can never be too vigilant given the increasing complexity of cyber-threats in M&A deals,” commented Robert Dennehy, SVP, MACOM. “Darktrace’s Enterprise Immune System is helping us stay proactive and aware of our cyber risk profile.”

In a recent implementation, MACOM leveraged the Enterprise Immune System to inspect the child network for any policy discrepancies that would prolong the merging of the two networks. Darktrace’s AI technology works by learning the normal ‘pattern of life’ of a network to detect and respond to emerging or latent threats in real time. The technology is deployed in less than an hour, and requires no additional training or configuration, allowing it to work effectively and quickly under the aggressive timelines of a merger or acquisition.

“Darktrace’s technology gave us visibility into potential implementation differences and policy discrepancies,” added Dennehy. “Leveraging Darktrace’s AI technology, we were able to identify and remediate these differences before connecting the two networks, thus mitigating potential integration risks.”

The integration of two networks exposes companies to considerable risks, making organizations undergoing M&As a prime target for cyber-criminals. Until recently, companies have merged the networks with little to no cyber due diligence conducted on the target network before, during, and after the acquisition. Acquiring companies mainly focused on due diligence with regards to financial and legal fundamentals.

“Modern M&A practices need to include a realization that companies are also acquiring past, present, and even future cyber-threats,” commented Nicole Eagan, CEO, Darktrace. “Boards of Directors are paying more attention to their cyber security posture, and companies need to ensure they take rigorous action. By relying on Darktrace’s technology, MACOM is leading the charge for incorporating cyber risk into the due diligence process and will be able to stay abreast of possible vulnerabilities arising from future acquisitions.”

To read more about MACOM’s security initiatives, download the case study.

About Darktrace

Darktrace is the world’s leading machine learning company for cyber security. Created by mathematicians from the University of Cambridge, the Enterprise Immune System uses AI algorithms to automatically detect and take action against cyber-threats within all types of networks, including physical, cloud and virtualized networks, as well as IoT and industrial control systems. A self-configuring platform, Darktrace requires no prior set-up, identifying advanced threats in real time, including zero-days, insiders and stealthy, silent attackers. Headquartered in San Francisco and Cambridge, UK, Darktrace has 24 offices worldwide.

About MACOM

MACOM is a new breed of analog semiconductor company — one that delivers a unique combination of high growth, diversification and high profitability. MACOM powers the infrastructure that millions of lives and livelihoods depend on every minute to communicate, transact business, travel, stay informed and be entertained. Its technology increases the speed and coverage of the mobile Internet and enables fiber optic networks to carry previously unimaginable volumes of traffic to businesses, homes and data centers. MACOM is a pillar of the semiconductor industry, thriving for more than 60 years of daring to change the world for the better through bold technological strokes that deliver true competitive advantage to customers and superior value to investors. For more information about MACOM, please visit www.macom.com.