Security sector saw 207 deals during the first half of 2025, on pace to exceed 2024 levels. Demand was strong from strategic and financial buyers with PE firms acquiring 93 Security companies, equal to 45% of total deal volumes.
Security sector saw 207 deals during the first half of 2025, on pace to exceed 2024 levels. Demand was strong from strategic and financial buyers with PE firms acquiring 93 Security companies, equal to 45% of total deal volumes.
During the first six months of 2025, total disclosed M&A transaction values reached $36B, well above 2023 and 2024 levels due primarily to a $32B megadeal in the first quarter. Only 15% of deals disclosed their financial terms as buyers preferred to keep their M&A strategies private.
Looking at VC funding, after peaking in 2021 these investments have dried up for the Security sector and that trend continued into the first half of 2025. Companies have instead been encouraged to pursue M&A strategies for growth and liquidity.
During the first half of 2025, we saw 11 buyers which each made 2 acquisitions in the Security sector. Strategic buyers included Zscaler, JumpCloud, Assa Abloy, Integrity 360, Allurity, IONQ, Cytracom, and Tenable. Financial buyers CharlesBank, AFM Capital Partners and Alpine Investors were also active acquirers in the space.