Mergers & Acquisitions to Lucratively Influence Virtual Private Network Expansion

Massive requirement for safeguarding & encrypting the connection between a device and internet equipment has enhanced the popularity of virtual private network services across the globe. Apart from this, the need for monitoring and curbing online fraud has resulted in massive demand for virtual private networking tools. The onset of artificial intelligence and machine learning tools along with their integration of the virtual private network will reinforce cyber security, thereby propelling the growth of the virtual private network market.

The industry 4.0 revolution will also provide impetus to the adoption of VPN solutions. The outbreak of the COVID-19 pandemic resulted in a rise in the number of cases of credit card hacking and money laundering cases online, and this has translated into the huge necessity of a strong virtual private network. According to the Allied Market Research report, the global virtual private network market is anticipated to hit $75.59 billion by 2027. 

Key players in the virtual private network market are implementing various business strategies such as mergers & acquisitions to reduce competition and establish dominance in the market. Moreover, the strategy of vertical & horizontal mergers & acquisitions helps them in increasing their regional presence. A new product, service, and technology launch by industry players are aimed at strengthening their product portfolio and increasing their product, service, and technology offerings across the globe. Following are some of the key trends observed in the virtual private network market. 

New technology launches are predicted to help industry players in providing a seamless digital experience to end-users along with gaining the first-mover advantage in the market. The strategy will help industry players in expanding their business across the globe and earn huge revenues. On June 14, 2022, Cisco System Inc., a U.S.-based firm in networking hardware & networking software business, launched AppDynamics Cloud, a cloud-native observability tool for new apps based on complex distributed architectures and solutions.

Furthermore, the AppDynamics Cloud tool will optimize business outcomes and improve the digital experiences of a consumer through the optimization of cloud-native apps. The strategic move is aimed at reducing costs, increasing transaction revenue, and securing user & organization data. 

Industry players are entering strategic deals for enhancing their product and service offerings in the market. On June 17, 2022, Telefonica Tech, a Spain-based firm in the digital transformation business, entered a deal with IBM Corporation and Red Hat for integrating the OpenShift tool of RedHat into a new cloud solution for Telefonica. Moreover, the tool will be used in Telefonica’s enterprises across Latin America and Europe. Reportedly, the integration of the cloud solution and RedHat’s OpenShift tool will be promoted as the Telefónica Red Hat OpenShift Service. The strategic move is aimed at helping firms upgrade their cloud apps and boost their digital transformation. 

A merger is one of the key strategies adopted by industry players to improve their product or service portfolio and consolidate their position in the market. On February 2, 2022, NordVPN, a virtual private network (VPN) service created by Nord Security firm which develops cybersecurity software, and SurfShark, a VPN service firm based in Netherland and offering virtual private network services, have declared a merger. The strategic move is aimed at reinforcing the market position of both the players along with fulfilling consumer requirements. Furthermore, the merger of two giant virtual private network suppliers will help in strengthening the VPN portfolio of the merged entity.  

Acquisition strategy has played a key role for industry players in lucratively influencing the growth of their business, and will continue to do so even in the ensuing years. In September 2021, Kape Technologies PLC, a U.K.-based firm developing digital products in the online security space, acquired ExpressVPN, a major virtual private network service provider, for nearly $930 million. Earlier, Kape Technologies acquired VPN service providers such as Cyber Ghost and Zenmate. The move is aimed at strengthening the position of Kape Technologies in the consumer security market. Such market strategies and trends will open new facades of growth for the virtual private network market.

A trend of acquiring new firms for increasing their product portfolio and enhancing their business across various industry verticals has been constantly witnessed among players across the globe. In December 2021, Avast Software S.R.O., a Czech-based cybersecurity software firm, acquired Evernym, the Self-Sovereign Identity Company. The strategic initiative is aimed at expanding the online presence of Avast across the globe. Furthermore, the move is aimed at producing new products and offering unique services based on digitized online credentials. The acquisition will also help Avast Software S.R.O in improving the online experience of end-users. 

In July 2021, Absolute Software Corporation, an American- Canadian firm, and leader in next-gen Endpoint Resilience™ solutions declared that it completed the acquisition of NetMotion Software, a U.S.- based software firm specializing in network security. The strategic move is aimed at strengthening the defence platform of Absolute devices embedded in many devices and improving device connectivity and online visibility. 

Digital Marketing Engineer @ Allied Market Research