Cybersecurity remains one of the most active corners of the global M&A market, with 2025 delivering another very strong year - nearly 500 global deals, up from 350 in 2024.
Market fundamentals remain highly supportive, with structural tailwinds including rising threat sophistication, tightening regulation, expanding cloud and AI-driven attack surfaces, and persistent talent shortages. The global cybersecurity market for software and services is forecast to grow from ~$213bn in 2025 to ~$309bn in 2029, a ~10% CAGR.
AI is reinforcing, not disrupting, demand for cybersecurity.
Anthropic's April 2026 launch of Claude Mythos (Preview) - as part of Project Glasswing - sent initial shockwaves through public cyber markets, but CEOs across Palo Alto Networks, CrowdStrike and others pushed back strongly: more AI means more attack surface, more complexity and more demand for specialist cybersecurity partners, not less. Share prices across major platforms have since recovered, while AI-native cyber vendors continue to attract disproportionate capital.
Buyers are increasingly prioritising recurring, scalable models over project-based consulting, with MSSPs, MDR and compliance-led platforms commanding premium valuations. Strategics are targeting capability expansion and cross-sell within existing client bases, while sponsors remain focused on platform creation and consolidation. Landmark transactions over the period include Booz Allen's acquisition of Defy Security, Insight's acquisition of Sekuro (advised by Equiteq), Check Point's acquisition of Lakera, Accenture's acquisition of CyberCX and Gryphon's investment in Fortreum.