Security sector saw 135 deals during the first quarter of 2025, on pace to exceed 2024 levels. Demand was strong from strategic and financial buyers with PE firms acquiring 51 Security companies, equal to 38% of total deal volumes.

By the end of the first quarter of 2025, total disclosed M&A transaction values reached $33.6B, exceeding levels seen in all of 2024 due to a megadeal. 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 three months of 2025. Companies have instead been encouraged to pursue M&A strategies for growth and liquidity.

During the first quarter of 2025, strategic companies Assa Abloy and Integrity360, which each made 2 acquisitions, were the top acquirers of Security companies.