Etude sur le marché de la cyber sécurité (2011)
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The PwC Cyber Security M&A Review analyzes the significant growth and trends in the global cyber security market, which exceeded $22 billion in total investments over three years. The report highlights increased deal activity driven by rising cyber threats, technological advancements, and greater awareness of security risks among organizations. It notes that strategic investors dominate the M&A landscape, with both defensive and offensive security projects attracting substantial interest and investment.
Etude sur le marché de la cyber sécurité (2011)
- 1. pwc.com Cyber Security M&A Decoding deals in the global Cyber Security industry Cyber Security M&A review November 2011
- 2. Contents Introduction 03 Cyber Security market overview 04 Deal activity 06 Valuation trends 08 Deal makers 10 Future deal prospects 13 PwC case study 14 2 PwC
- 3. Introduction Welcome to PwC’s1 Cyber Security M&A review. Here we provide a breakdown and analysis of deal activity in the Cyber Security market and examine some of the underlying forces and trends that are driving this rapidly evolving industry. We review global deal activity for the last three years where total investment exceeded $22 billion. The market is undergoing significant change in many segments and is attracting investment from many different types of companies including IT companies, defence contractors, technology businesses, professional services firms, telecommunications firms and financial investors. This convergence is driving innovation in the market and, coupled with an increasing awareness of cyber security risks across all organisations, presents significant opportunities for businesses that can address current and emerging issues. This will continue to drive M&A activity by both strategic and financial investors. Barry Jaber Director Security Industry Leader 1 “PwC” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 3
- 4. Cyber Security market overview The term Cyber Security is relatively new and is commonly thought to be a component of the more familiar Information Security (a slightly broader term that includes non-cyber or offline information) that has been in common use for several decades. Definitions of information security vary but commonly centre on protecting the confidentiality, integrity and availability of information, regardless of the form Global Cyber Security of the information. spending 2011: $60 billion 4 PwC
- 5. Defining the market Growing threats and increasing awareness are key In our view, the definition of Cyber Security needs to be broadened to reflect two distinct characteristics. The first is Security breaches and malware attacks have been regular that Cyber Security includes the development of products and front-page news over the past few years. There have been a services for offensive applications. These are largely (if not number of high profile Cyber Security incidents this year exclusively) designed for government and military use, and alone, from computer hacking groups, such as LulzSec’s attack are often also referred to as cyber weapons or cyber defence. on the Playstation network to foreign intelligence services, The second is that Cyber Security not only encompasses the IT including an attack in March where 24,000 files were stolen domain (primarily Internet Protocol or just ‘Internet’ from a Pentagon defence contractor. More recently, quasi- connected devices), but also telecoms equipment and political activist groups such as Anonymous have targeted a industrial equipment. range of high-profile businesses and organisations. The apparent ease with which some of these activities have taken The Cyber Security market (or industry) therefore is comprised place has very publicly highlighted the importance of Cyber of companies that provide products and/or services for defensive Security. The costs arising from such breaches have also and offensive applications across the IT, telecoms and industrial focused attention on security. Sony reported that the hack of domains. And that is the definition of the sector that we have its PlayStation network and the consequent loss of its network used in compiling this report. availability will cost the business $171 million. Market size and projected growth We have also seen the use of viruses developed to attack specific types of equipment. The Stuxnet virus, for example, Global Cyber Security spending was approximately $60 billion aimed at industrial control systems, was largely attributed in 2011 and is expected to grow at close to 10% every year with the problems that hit the Iranian nuclear programme, over the next 3-5 years. The US accounts for over half of the impacting its uranium enrichment programme. On a more total. The next largest market is Japan, followed by the UK. personal – but no less sensational – level, the breach of In most countries, the private sector accounts for the majority of individuals’ mobile phone voicemail accounts by reporters Cyber Security spending. The notable exception is the US where from a News International publication, The News of the government spending is almost equal to that of the private World, has also brought home the vulnerability of telecoms sector. and other equipment to unauthorised access. The main drivers of the Cyber Security market are: Against this backdrop of growing threats, deal activity continues to increase. • Increasing cyber threats, both from new actors and new threat vectors (the paths that attacks can take). A growing market: Percentage of respondents who believe that information security spending will increase in the next 12 months • Greater vulnerabilities due to the more pervasive use of 60 technology, particularly mobile devices and Cloud computing. • Increasing awareness by organisations and consumers of 50 52% 51% the threats and potential threats. 46% 40 44% 44% • Changes in technology driving product and service 38% innovation of security solutions. 30 • Increasing regulation particularly those enforcing the requirement to secure personal data. 20 • Changes in outsourcing; some organisations are increasingly relying on partners for security, whilst others 10 are growing internal security spending to maintain greater levels of control. 0 2006 2007 2008 2009 2010 2011 Source: PwC 2012 Global State of Information Security Survey Cyber Security M&A 5
- 6. Deal activity Deal volume and value 2008 2009 2010 2011H1 Number of deals 77 88 106 37 Total deal value ($millions) 4,155 1,630 5,882 10,175 2008 2009 2010 2011H1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Number of deals 21 15 17 24 19 22 17 30 23 13 37 33 24 13 Total deal value ($millions) 149 441 565 3,000 299 137 326 868 661 654 2,179 2,388 9,543 633 Cumulative spending on Cyber Security deals since 2008 Deal value increased totals nearly $22 billion, an average of over $6 billion in each year. Acquirers have been from a range of sectors including sixfold in the last 12 Technology, IT services, Aerospace & Defence as well as months financial investors. 2010 saw an increase in both total deal volume and value of nearly Total investment since 40% versus 2008, following a marked slowdown in total deal value in 2009. Total deal value increased by over 70% in the first 2008 has exceeded $22 half of 2011 versus full year 2010 to $10.2 billion, driven primarily billion globally by Intel’s $7.8 billion acquisition of McAfee which was completed in February 2011. Total deal volume in the first half 2011 is slightly ahead of the same period in 2010. There have been a number of other mega deals (with values of $500 million or above) since 2009, including Dell’s acquisition of Secureworks in 2011 and Apax Partners’ acquisition of Sophos in 2010. There has been a return to larger deal sizes since 2009 which saw a sharp decline in total deal value. However, the total number of deals in this period increased as the majority of the activity focused on smaller investments (deal valued at less than $10m). Overall, deal value, deal volume and average deal size have all been trending up over the reviewed period. 6 PwC
- 7. Average deal size 2008-2011H1 800 700 Intel acquires McAfee Dell acquires Secureworks 600 500 USD (millions) 400 BAE Systems acquires Detica Apax Partners Symantec acquires MessageLabs Group acquire Sophos 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 2011 Average deal size Deal activity by number and range of deal value 2008-2011H1 3% 4% 5% 100% 8% 6% 10% 10% 14% 80% 16% 19% 14% Share of deal volume 26% 16% 19% 14% 60% 40% 56% 56% 53% 54% 20% 0% 2008 2009 2010 2011 H1 Mega Deals ($500m+) Market Consolidation Deals (<$10m) Large Deals ($100-500m) Deals with undiscolsed values Medium Deals ($10-100m) Cyber Security M&A 7
- 8. Valuation trends Deal valuation multiples Deal valuation trends, 2008-2011H1, Deal value/EBITDA ratio The valuation multiples in cyber security deals are relatively 20 high, with both mean and median deal value-to-EBITDA ratios at around 15 times during the period from 2008 through to 2011H1. Deal value-to-revenue ratios were around 2-3 times over the same period. While these figures have been adjusted to omit some inflated values, they are clear indicators 15 that acquirers are willing to pay a premium to buy Cyber Security companies. 10 Deal value/EBITDA ratio recovered in 2011 to over 15x 5 0 2008 2009 2010 2011 H1 Mean Median 6 Deal valuation trends, 2008-2011H1, Deal value/Revenue ratio 5 4 3 2 1 0 2008 2009 2010 2011 H1 Mean Median 8 PwC
- 9. Listed Cyber Security companies Operating Profit before Revenue income valuations and share price trends multiple tax multiple multiple Price-Earnings multiples for listed pure-play security Checkpoint 20.6 19.5 10.0 businesses, all US-based, range from 14-51x. Sourcefire 51.5 36.1 5.5 The market in cyber security stocks divides between pure plays and software/hardware providers that have a strong Fortinet 51.1 51.1 8.7 security offering as part of their products and services. Prices Symantec 14.1 16.7 2.0 for pure play stocks are volatile, with large swings often accompanying news items relating to specific breaches. As the Websense 25.1 29.4 2.3 graph below shows, prices in some stocks have significantly Note: Share price on 24 August 2011; financial data for last reported full financial year outpaced market averages. For example, Sourcefire, one of the leading providers of security software to large businesses and governments, has seen a four-fold increase in its share price since May 2009. Many stocks trade at very high earnings multiples and have ratios of ten times or more. Share price (indexed) of pure play Cyber Security companies, January 2008-August 2011 500 400 index (4 January 2008=100) 300 200 100 0 04-May-08 04-May-09 04-May-10 04-May-11 04-July-08 04-Nov-08 04-Nov-09 04-Nov-10 04-Sep-08 04-Sep-09 04-Sep-10 04-Mar-08 04-Mar-09 04-Mar-10 04-Mar-11 04-Jan-08 04-Jan-09 04-Jan-10 04-Jan-11 04-Jul-09 04-Jul-10 Sourcefile Checkpoint Fortinet Symantec Websense Guidance Software Note: Fortinet indexed at 100 in November 2009 when first listed. Cyber Security M&A 9
- 10. Deal makers Overview Deal activity by investor group Measured by total number of deals 2008-2011H1 Strategic investors accounted for c.70-80% of deal volume from 2008-2011 H1 and include companies from a range of 100 sectors including Technology, IT services and Aerospace 26.0% 26.1% 18.9% 29.7% & Defence. 80 Top 10 deals Share of/number of deals A number of features characterise the top ten deals in the period we have looked at between 2008-2011 H1. 60 Technology and IT software/services businesses (eg Intel, Symantec Dell and Hewlett Packard) have dominated. The only defence contractors to feature in the top ten are 40 74.0% 73.9% 81.1% 70.3% BAE Systems and Raytheon. All of the top ten deals featured only UK and US based targets and acquirers. The two biggest deals in H1 2011 were Intel’s acquisition 20 of McAfee for $7.8 billion and Dell’s $612 million acquisition of Secureworks. This contrasts with 2010 which saw Hewlett Packard purchase ArcSight for 0 $1.6 billion and Symantec’s $1.3 billion acquisition of 2008 2009 2010 2011 H1 VeriSign. Overall the top ten deals in 2011 so far have Strategic Investor Financial Investor been worth $10.1 billion up from $5.0 billion in 2010 and $1.5 billion in 2009 and in each year the top ten deals have accounted for more than 85% of total deal value in that year. All of the top ten deals The only large-scale financial investors to date have been Apax Partners with their acquisition of Sophos in 2010 featured only UK and US for $580 million and Thoma Bravo’s acquisition of based targets and SonicWall also in 2010 for $633 million. acquirers Top10 Cyber Security deals, 2008-2011H1 Date Value of transaction Target name Target nation Acquirer name Acquirer nation effective (USDm) 02/28/2011 McAfee Inc United States Intel Corp United States 7,828 10/22/2010 ArcSight Inc United States Hewlett-Packard Co United States 1,569 08/09/2010 VeriSign Inc-Indentity Business United States Symantec Corp United States 1,280 10/23/2008 Detica Group PLC United Kingdom BAE Systems (Holdings) Ltd United Kingdom 1,021 11/14/2008 MessageLabs Group Ltd United Kingdom Symantec Corp United States 695 07/20/2010 SonicWALL Inc United States Thoma Bravo Fund United States 633 02/08/2011 SecureWorks Inc United States Dell Inc United States 612 03/05/2010 Sophos PLC United Kingdom Apax Partners LLP United Kingdom 580 31/01/2011 Applied Signal Technology, Inc. United States Raytheon Co United States 490 11/18/2008 Secure Computing Corp United States McAfee Inc United States 476 10 PwC
- 11. Financial investors Over 2008-2011 H1, around 25% of deal volume was attributable to financial investors, accounting for 15% of total deal value. In terms of share of deal value, financial investors have started 2011 at a relatively slow rate compared to 2009 and 2010 where they contributed 30% and 25% of total deal value respectively. Top10 Cyber Security deals with financial acquirers, 2008-2011H1 Date Value of transaction Target name Target nation Acquirer name Acquirer nation effective (USDm) 07/20/2010 SonicWALL Inc United States Thoma Bravo Fund United States 633.64 05/03/2010 Sophos PLC United Kingdom Apax Partners LLP United Kingdom 580.00 10/05/2009 AVG Technologies CZ sro Czech Republic TA Associates Inc United States 200.00 09/05/2008 Tumbleweed Communications Corp United States Tornado Acquisition Corp United States 141.46 03/24/2009 Aladdin Knowledge Systems Ltd Israel Investor Group United States 137.12 01/25/2010 ExteNet Systems Inc United States Investor Group United States 128.40 07/28/2009 Entrust Inc United States Thoma Bravo LLC United States 123.87 Deal rationale Aerospace & Defence companies The rationale for acquisitions of Cyber Security companies BAE Systems entered the market by acquiring Detica plc in differs by the type of acquirer: 2008 for c.$1 billion. BAE Systems has since acquired part • Defence contractors are seeking to diversify away from of L-1 Identity Solutions in a three-way deal with Safran for core defence markets as i) the near term outlook for $297m and two Scandinavian businesses, ETI and Norkom, defence spending in Western Europe is negative; ii) there for $210 million and $290 million respectively. is a structural trend in government spending away from Raytheon has been acquiring in the last few years with the defence and towards security, and iii) the Cyber Security $211 million acquisition of Oakley Networks in 2007 and of market is expected to experience strong growth. Defence SI Government solutions and Telemus Solutions in 2008. contractors have targeted acquisitions that provide access Further acquisitions included the $350 million purchase of to new customers (primarily government agencies e.g. CIA, BBN technologies in 2009 and the $490 million purchase of FBI, GCHQ, MI5/6), new capabilities and access to scarce Applied Signal Technologies in 2011. security-cleared personnel. • IT companies see Cyber Security as a necessary capability to Outside the top ten, Mantech has made a number of sub-$100 have in-house in order to provide customers with end-to-end million acquisitions and QinetiQ has been active, completing solutions. As threats and incidents proliferate, Cyber Security a number of acquisitions including the $40m acquisition of is increasingly being seen as a source of differentiation for Cyveillance in 2009. their products and services. • Technology companies have been broadening their product Technology companies portfolios and driving security features into existing products. The major technology businesses accounted for six of the top • Private equity investors are attracted to the high growth ten deals over the review period. Intel acquired McAfee for potential available from the Cyber Security sector and, $7.8 billion in 2011 which was the largest deal in the sector as deals continue to flow, the clear path to future exit during our review period. Symantec acquired VeriSign in opportunities. Venture capitalists have been active and 2010 for $1.28 billion and MessageLabs in 2008 for $695 are making smaller investments, particularly in the US. million. Symantec also made a number of smaller acquisitions Cyber Security M&A 11
- 12. including GuardianEdge Technologies, Mi5 Networks, Deal activity 2008-2011H1 SoftScan and PC Tools. Dell bought SecureWorks in 2011 for Measured by total number of deals over $600 million, HP acquired ArcSight in 2010 for nearly 120 $1.6 billion and McAfee acquired Secure Computing in 2008. Outside the top ten, IBM has made a number of smaller 100 acquistions including BigFix in 2010, Guardium and Ounce Labs in 2009. 80 BAE Systems acquires L-1 Intelligence Services Group BAE Systems acquisition of US company L-1 Identity Solutions’ Number of deals consulting business in September 2010 for a total 60 consideration of $297 million provides a clear example of defence businesses’ strategies to deepen their capabilities in 40 offering cyber security advice and services to government clients. BAE Systems acquired three divisions from L-1 that together made up its Intelligence Services Group. In a release, 20 the president of BAE Systems Intelligence and Security sector described the deal as “all about building our capabilities to better meet the dynamic and changing and security needs of 0 2008 2009 2010 2011 H1 our US government customers”. Total number of deals Intel acquires McAfee Total number of deals excluding deals with US targets or acquirers Total number of deals with US targets or acquirers The largest deal in the sector to date, Intel’s acquisition of McAfee for $7.8 billion, highlights the importance of security for large established technology businesses. However, the Regional distribution of deals by acquirer region 2008-2011H1 market remains divided in its views about the rationale Measured by number of deals with disclosed values behind Intel’s decision to buy and the extent to which the value of the deal will generate the right level of returns. While some commentators have attributed the deal to Intel’s long- term plan to embed security in its chipsets, others have Africa / Middle East (1%) questioned the feasibility of this in the medium term. Other Asia Pacific (18%) views include Intel’s desire to move further into the high- Europe (26%) growth mobile market, where McAfee has a range of security North America (54%) products, and others believe the acquisition will allow Intel to Other (0%) have specific software written for its chips to provide South America (1%) additional security. US is key As expected, when looked at in terms of value, the majority of deals (over 50%) involve acquirers or targets that are based in Regional distribution of deals by acquirer region 2008-2011H1 North America. However, the spread is more global when it Measured by number of deals comes to the volume of deals. There are two reasons for the focus of value in North America. First, the US has a very strong technology industry, and secondly, the US defence and Africa / Middle East (1%) intelligence budgets are significantly larger than in any other Asia Pacific (18%) country. By comparison, Europe accounted for approximately a quarter of deal value and a third of deal volume over the Europe (26%) same period. North America (54%) Other (0%) South America (1%) 12 PwC
- 13. Future deal prospects There are a number of key trends that are likely to drive Cyber The graphic below shows some of the main long term drivers Security deals in the future. As the use of the internet becomes shaping information technology and its uses. These are key increasingly mobile (with smart phones and tablets already reasons for the increasing interest in Cyber Security and the accounting for a high proportion of internet activity), the development of an active and growing M&A market. As the perceived vulnerability of those technologies will add to the world becomes ever more connected and appreciative of the demand for higher levels of security. The adoption of Cloud many benefits that unprecedented information sharing and computing for personal, corporate and government use will also communications creates, there is also a growing awareness of drive the need for greater protection. And both of these come how vulnerable such extensive and complex networks can be. against a backdrop of heightened awareness of hacks, malware Vast amounts of data are available more readily to more and deliberate attacks on institutions and companies by semi- people than ever before, but there is an equal recognition that organized groups such as the Anonymous group of hackers. managing and securing the data explosion is an increasingly difficult. The divide between work and home is blurring, with Defence contractors increasingly perceive the need to expand constantly connected mobile users now working in ways that their offerings to governments, both to provide additional create challenges for corporate IT in securing their systems security services and in the development of a wide range of without damaging productivity. cyber weaponry that will be used for both offensive and defensive purposes against others’ networks and technology. Added to these broad trends are the specific impacts of e- finance with transactions increasingly taking place online, As consumers and organisations become more aware of the tough regulatory standards for data protection and privacy wide and growing array of threats that are ranged against and the development of new ‘internets’ large private networks their data and services, they will demand more from the and walled garden models for media and other forms of companies that they select for hardware and software. distribution. Overall, then, it is not hard to see why Cyber Existing providers are likely to seek acquisitions that can give Security is seen an as a major growth area and a market that them rapid access to differentiating their offerings with many businesses are seeking to enter. enhanced levels of security. Long term drivers shaping the cyber security market 1 Infrastructure revolution • • Increase in penetration of high speed broadband and wireless networks Centralisation of computing resources and widespread adoption of cloud computing • Proliferation of IP (internet protocol) connected devices and growth in functionality • Improved global ICT (Information and Communications Technology) infrastructure enabling greater outsourcing • Device convergence and increasing modularisation of software components • Blurring work/personal life divide and ‘Bring Your Own’ approach to enterprise IT • Evolution in user interfaces and emergence of potentially disruptive technologies 2 Data explosion • • Greater sharing of sensitive data between organisations and individuals A significant increase in visual data • More people connected globally • Greater automated traffic from devices • A multiplication of devices and applications generating traffic • A greater need for the classification of data 3 An always-on, always-connected • • Greater connectivity between people driven by social networking and other platforms Increasingly seamless connectivity between devices world • Increasing information connectivity and data mining • Increased Critical National Infrastructure and public services connectivity 4 Future finance • • Rising levels of electronic and mobile commerce and banking Development of new banking models • Growth in new payment models • Emergence of digital cash 5 Tougher Regulation • Increasing regulation relating to privacy and Standards • Increasing standards on Information Security • Globalisation and net neutrality as opposing forces to regulation and standardisation 6 Multiple Internets • • Greater censorship Political motivations driving new state/regional internets • New and more secure internets • Closed social networks • Growth in paid content 7 New Identity and Trust Models • The effectiveness of current identity concepts continues to decline • Identity becomes increasingly important in the move from perimeter to information based security • New models of trust develop for people, infrastructure, including devices, and data Source: PwC / Technology Safety Board Information Security 2020 report Cyber Security M&A 13
- 14. Case study Entering the Cyber Security market PwC recently helped a client develop an entry strategy Our analysis provided our client with an assessment for the Cyber Security market. of the attractiveness of various areas of the Cyber Security market, based on external research and We started our work by reframing the question and breaking it down interviews with buyers of Cyber Security solutions. into a number of key issues: We also compared various market entry options and formulated a shortlist of clear approaches to entering • What is the most useful way to define and segment the identified segments. the Cyber Security market? This provided our client with a robust and fact-based analysis that enabled them to formulate an entry • Which segments are the most attractive? strategy that was both deliverable and provided a platform for future growth. • What choices need to be made to ensure the right strategic focus? • What is the right approach to enter these markets successfully (e.g. organic growth, partnership, JV or acquisition)? • What changes does the organisation need to make to enable this? Other relevant thought leadership 14 PwC
- 15. Methodology Cyber Security M&A is an analysis of mergers and acquisitions Regional categories used in this report approximate United in the Cyber Security industry. Information was sourced from Nations (UN) Regional Groups as determined by the UN Thomson Financial and includes deals where the target is Statistics Division, with the exception of the North America defined as a cyber security business definition in this report. region (includes North America and Latin and Caribbean UN groups), the Asia and Oceania region (includes Asia and This analysis includes all individual mergers and acquisitions Oceania UN groups), and Europe (divided into United for disclosed or undisclosed values, leveraged buyouts, Kingdom, plus Eurozone and Europe ex-UK and Eurozone privatizations, minority stake purchases, and acquisitions of regions). The Eurozone includes Austria, Belgium, Cyprus, remaining interest announced between January 1, 2008 and Finland, France, Germany, Greece, Ireland, Italy, June 30, 2011, with a deal status of completed. The term Luxembourg, Malta, Netherlands, Portugal, Slovenia, and deals, when referenced herein, is used interchangeably with Spain. Oceania includes Australia, New Zealand, Melanesia, transactions. Micronesia, and Polynesia. Overseas territories were included in the region of the parent country. OneSecurity http://www.pwc.co.uk/cybersavvyceo E-espionage Delusions of safety? What risks does your organisation The Cyber Savvy CEO: Getting face from cyber-attacks? to grips with today’s growing cyber-threats Secure Information is Power Cyber Security M&A 15
- 16. Contacts Barry Jaber Scott Thompson Director, Security Industry Leader US Aerospace and Defence Leader [email protected] [email protected] +44 (0)20 721 31567 +1 703 918 1976 Neil Hampson Bob Long Partner, UK and Global Aerospace US Aerospace and Defence & Defence Leader Transaction Services Leader [email protected] [email protected] +44 (0)20 7804 9405 +1 703 918 3025 Andrew McCrosson Partner, Transaction Services [email protected] +44 (0)20 7213 5334 Michelle Ritchie Director, Transaction Services [email protected] +44 (0)20 7212 2502 Rob Morgan Director, Corporate Finance [email protected] +44 (0)20 7212 3670 Philip Shepherd Partner, TMT [email protected] +44 (0)20 7804 9366 William Beer Director, OneSecurity [email protected] +44 (0)20 7212 7337 pwc.com This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2011 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way. HB-2011-09-14-1705-CG_Cyber Security