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.
Cybersecurity M&A is being powered by a combination of rising threat sophistication, expanding multi-cloud and AI-driven attack surfaces, tightening regulation (NIS2, DORA, CRA, cyber insurance mandates) and persistent talent shortages. These structural tailwinds are forcing higher security spend, accelerating vendor consolidation, and driving buyer demand for scaled, specialised cybersecurity platforms.
2025 was another record-breaking year for cybersecurity M&A, with 487 global transactions completed — up roughly 38% on 2024 (352 deals). Sustained buyer interest is being driven by rising threat sophistication, multi-cloud and digital transformation expansion, tightening compliance requirements and persistent talent shortages.
The global cybersecurity market for software and services is projected to grow from approximately $213bn in 2025 to ~$309bn in 2029, a compound annual growth rate of around 10%. The US represents ~50% of global spend. The European market is forecast to grow from ~$63bn to ~$94bn over the same period, also at ~10% CAGR, anchored by the UK, Germany, France and the Netherlands.
AI is reinforcing, not disrupting, cybersecurity demand — but it is putting structural pressure on human-heavy delivery models. Traditional pen testing and consulting are increasingly automatable, so vendors that integrate AI into their testing and operations are protecting margins and commanding premium valuations, while purely human-led firms face compression. CEOs across CrowdStrike, Palo Alto Networks, Cloudsmith and Sola have publicly stressed that AI introduces new risks and complexities rather than eliminating them.
Buyers are prioritising recurring, scalable models over project-based consulting. MSSPs, managed detection and response (MDR), compliance-led platforms (including CMMC in the US), architecture and design consulting and AI-native cybersecurity vendors are commanding the most competitive processes. Businesses with high recurring revenue visibility, clear differentiation, scalable delivery and consistent organic growth attract the highest multiples.
Recent headline transactions include Booz Allen's acquisition of Defy Security (Feb-26), Gryphon Investors' investment in Fortreum (Jan-26), Insight Enterprises' acquisition of Sekuro (Oct-25, advised by Equiteq), Check Point's acquisition of Lakera (Sep-25), Accenture's acquisition of CyberCX (Aug-25), Orange's acquisition of Ensec (Jul-25), Proofpoint (Thoma Bravo)'s acquisition of Hornetsecurity (May-25) and Infosys' acquisition of The Missing Link (Apr-25).
Strategic buyers are focused on capability expansion, geographic reach and cross-selling cybersecurity into existing client bases, often buying to address specific service gaps such as incident response, IAM or AI-native protection. Private equity sponsors are focused on platform creation and consolidation, building scaled cybersecurity platforms with end-to-end services, higher recurring revenue and increasing services exposure — and are increasingly pursuing creative deal structures including carve-outs.
Premium outcomes are driven by recurring revenue visibility, a credible AI story, scalable growth through cross-sell, a strong and deep management team and a proven track record of delivering complex, mission-critical services. In a market where multiples range from below 1x to above 20x revenue, a clear and well-articulated equity story is often the difference between a failed and a successful process.