{"id":36557,"date":"2023-07-04T11:00:00","date_gmt":"2023-07-04T11:00:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2023\/07\/04\/nordic-firms-ride-wave-of-cyber-ma-activity\/"},"modified":"2026-08-20T16:14:31","modified_gmt":"2026-08-20T16:14:31","slug":"nordic-firms-ride-wave-of-cyber-ma-activity","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/it-networks\/2023\/07\/04\/nordic-firms-ride-wave-of-cyber-ma-activity\/","title":{"rendered":"Nordic firms ride wave of cyber M&A activity"},"content":{"rendered":"\n

HELSINKI \u2014 Nordic defense firms are buying each other up as they vie for a greater share of potential contracts that could come with increased cybersecurity funding among the region\u2019s armed forces.<\/p>\n\n\n\n

The mergers and acquisitions are taking place as Sweden seeks NATO membership, and neighboring Finland this year joined the alliance<\/a>.<\/p>\n\n\n\n

Combined, according to defense spending plans, the Nordic states of Denmark, Finland, Iceland, Norway and Sweden<\/a> are to invest more than $2 billion to upgrade their respective military and national security cyber defenses over the next three years.<\/p>\n\n\n\n

Meanwhile, cybersecurity companies are also forming strategic partnerships with the regional armed forces. For example, the Norwegian firm Atea won a two-year information technology and cybersecurity services contract worth $45 million from the Norwegian Defence Research Establishment (FFI) and the Norwegian National Security Authority (NSM).<\/p>\n\n\n\n

The former is responsible for Norway\u2019s defense research and development efforts, and the latter serves as the country\u2019s national intelligence agency. FFI also operates as a procurement agency for the property-focused Norwegian Defence Estates Agency, the Norwegian Armed Forces and the NSM.<\/p>\n\n\n\n

Atea signed the first segment of the two-part deal, with a two-year option, in June 2022. The second part of the deal was inked in April 2023. The contract covers the delivery of hardware, software, IT and network cyber defense solutions, and consultancy services.<\/p>\n\n\n\n

\u201cThe deal reflects the greater emphasis on IT network and infrastructure security in national defense areas. The contract reinforces our positive and developing relationship with the defense sector,\u201d said Steinar S\u00f8nsteby, CEO of Atea.<\/p>\n\n\n\n

The appetite for strategic corporate partners in the Nordic cybersecurity domain gained momentum in 2022 following a far-reaching nonequity collaborative agreement between Finnish software specialist Digia and Danish cybersecurity technologies provider Arbit Cyber Defence Systems.<\/p>\n\n\n\n

The collaboration was instrumental in securing a $6 million contract to build a protected information-exchange gateway for the Finnish Defence Forces, said Jussi Tammelin, the director of Digia\u2019s defense unit.<\/p>\n\n\n\n

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Finnish soldiers participate in training in Porvoo, east of Helsinki, Finland, on May 31, 2023. (Heikki Saukkomaa\/AFP via Getty Images)<\/figcaption><\/figure>\n\n\n\n

The contract includes the supply of a secure information-exchange gateway communication solution, as well as software and equipment. The technology is based on Digia\u2019s Linja software and Arbit\u2019s data diode.<\/p>\n\n\n\n

\u201cOur collaboration with Arbit reinforces the capabilities of our defense and security sector services in the Nordic countries. International cooperation improves the competitiveness of both companies when it comes to defense sector tenders and increases defense sector exports,\u201d Tammelin told Defense News.<\/p>\n\n\n\n

In 2022, Digia accelerated its plan to establish a dedicated defense unit, after it became clear Sweden and Finland intended to apply for NATO membership.<\/p>\n\n\n\n

Nordic countries must do more to strengthen their cybersecurity against increasing threats, said Natasha Friis Saxberg, the CEO of Danish ICT Industry Association, a trade organization representing information and communication technology firms.<\/p>\n\n\n\n

According to Saxberg, the pooling of Nordic skill sets in this area, driven by the wave of cybersecurity mergers and acquisitions, is beneficial to developing a deeper pan-Nordic expertise to counter cyberthreats.<\/p>\n\n\n\n

\u201cA significant number of the cyberattacks emanating from Russia and linked to the invasion of Ukraine are directed at Denmark and the other Nordic countries. Today, cyberthreats play a significant role in every war and conflict, and therefore it is necessary to invest in cybersecurity and make it a central element of our defense,\u201d Saxberg told Defense News<\/p>\n\n\n\n

Growth trends<\/h1>\n\n\n\n

Acquisitions \u2014 such as Swedish firm Lyvia\u2019s takeover of Polish company IT Systems and Solution \u2014 underline a trend where major players in the Nordic cybersecurity space with the financial means are looking to use such purchases to consolidate the market and accelerate regional growth. That acquisition by Lyvia is expected to help the company gain greater access to even larger contracts in the defense and national security sphere.<\/p>\n\n\n\n

The purchase also improves Lyvia\u2019s reach in to the Baltic region as well as Central and Eastern Europe, according to Oleksandr Fomenko, who leads the business\u2019s Central and Eastern European division.<\/p>\n\n\n\n

\u201cWe want to expand in this high-growth sector. ITSS is a large player in a fast-growing industry with top-drawer, end-to-end cybersecurity services and impressive IT infrastructure modernization resources,\u201d Fomenko told Defense News.<\/p>\n\n\n\n

Similarly, Norwegian cybersecurity company DNV\u2019s $107 million purchase of Finnish firm Nixu was motivated by a desire to win more contracts, while taking advantage of increasing investments by Nordic governments to upgrade and maintain next-generation cyber defenses and more reliable IT infrastructure.<\/p>\n\n\n\t