Security sector, which saw 523 deals in 2025, exceeding the 10-year high of 476 transactions achieved in 2021. Demand was strong from strategic and financial buyers with PE firms acquiring 223 Security companies, equal to 43% of total deal volumes. 

In 2025, total disclosed M&A transaction values reached $80.6B, well above 2022, 2023 and 2024 levels due primarily to a $32B megadeal in the first quarter and a $24.9B megadeal in the third. Only 13% of deals disclosed their financial terms as buyers preferred to keep their M&A strategies private. 

Looking at VC funding, after peaking in 2021, VC funding for Security sector companies has declined considerably since then, as have deal volumes. Companies have been encouraged to pursue M&A strategies for growth and liquidity. 

During 2025, we saw financial acquirers as the most acquisitive: Thoma Bravo added 7 security companies to its portfolio, Alpine Investors closed 6 deals, and Gemspring Capital made 5 transactions, followed by Charlesbank, Insight Partners, August Equity and MC Partners – with 4 each. The most active strategic acquirers were ASSA ABLOY, a global leader in access management solutions, with 5 deals and JumpCloud, an identity management platform creator with 4 deals.