Cybersecurity Concerns Creep Into M&A Transactions

By Emily Field (August 17, 2015, 5:08 PM EDT) -- Data security protections have become prominent in merger agreements amid a proliferation of corporate cyberbreaches, attorneys say, as problems ranging from a target company's inadequate cybersecurity to its privacy promises to consumers can throw a wrench into a deal and potentially lower the purchase price.

As high-profile breaches continue to dominate headlines, including the recent attack on Ashley Madison, an online dating service for married people looking for affairs, buyers are also now worrying about the potential hit to their own reputations if an acquired company turns out to have leaky data protections.

"The focus has increased over time on both...

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