Security Posture by Example

Scenario 18 - Mergers and Acquisitions Sunny Day

Amalgamated Virtual Sports is a subsidiary of the Amalgamated Example Company which produces and sells virtual reality games based on major professional sports.

Amalgamated Virtual Sports has plans to acquire Augmented Reality Sporting, a start-up selling augmented reality products based on college sports programs.

The Amalgamated Virtual Sports CISO recalls having read an article, ["The role of information technology systems in the performance of mergers and acquisitions", Franz T. Lohrke a, Cynthia Frownfelter-Lohrke a, David J. Ketchen, Jr.]](www.sciencedirect.com), on the increased frequency of data breaches in M&A situations. His staff also warned that Augmented Reality Sporting, being a startup, might not have adequate resources dedicated to security and there may be latent financial risk of cyber attack.

The Amalgamated team requests cybersecurity information on Augmented Reality Sporting's products and suppliers.

Recognizing the importance of cybersecurity and cyberresilience, Augmented Reality Sporting has invested in implementing a PACE system and has the requested information at their fingertips. Via API's, the Augmented Reality Sporting PACE system loads all the relevant data into the Amalgamated PACE system. The Amalgamated CISO team performs its due diligence and concludes there is acceptable risk. The acquisition proceeds and is a wild success resulting in million dollar bonus's to all involved.