MACOM folds AI technology into M&A due diligence

Darktrace, the enterprise immune system technology provider, has highlighted that corporations are using its self-learning artificial intelligence (AI) technology to conduct cyber security due diligence before, during, and after merger & acquisition (M&A) processes.

MACOM, a US-based semiconductor firm with facilities in the Asia Pacific region, is the first company to use Darktrace’s technology to conduct cyber due diligence during its acquisitions, Darktrace said. MACOM manufactures and supplies over 3,500 products across 40 different product lines.

Darktrace explains that the integration of two networks can make organisations undergoing M&As a prime target for cybercriminals. 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.

M&As require cyber assessment both at the pre-acquisition stage and during the merging of the two companies’ networks. The cyber due diligence has to establish that the target company’s intellectual property and expertise 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, the company said.

“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 from Darktrace to inspect the network of the potential acquisition 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,” said 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.”

“Modern M&A practices need to include a realisation 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.”