Let’s start by looking at M&A activity in the Security sector, which saw 377 deals through Q3 2026.  Demand was strong from strategic and financial buyers with PE firms acquiring 161 Security companies, equal to 43% of total deal volumes.

In the third quarter of 2026, total disclosed M&A transaction values reached $15.1B. Only 11% of transactions reported financial terms as acquirers preferred to keep their M&A strategies private.

Looking at VC funding, which has been volatile in recent years after peaking in 2021, these investments remained subdued through September 2026 and deal volumes were just a fraction of what they were a few years ago. Companies have instead been encouraged to pursue M&A strategies for growth and liquidity.

Through Q3 of 2026, PE-backed acquirers were the most acquisitive. Leonard Green & Partners-backed Pye-Barker Fire & Safety, a US-based fire protection and security services provider, added 11 security companies, while Morgan Stanley-backed Security 101, a US-based commercial security systems integrator, closed 3 deals. The most active strategic acquirers were Israel-based cybersecurity software provider Check Point Software Technologies and US-based cybersecurity platform CrowdStrike that announced 3 deals each.