Author: Callum Turcan, Corum Group Analyst
Tech M&A activity in the Security sector was robust in the first quarter of 2025, with 135 deals seen, on pace to exceed the 10-year high of 476 transactions in 2021. Cybercrime is a huge issue, costing the US over $450 billion in 2024, a figure forecasted to rise to over $1.8 trillion by 2028 as online criminals become more sophisticated.
Acquirers are eager to buy solutions that empower enterprises to keep their networks and confidential information secure in the face of the proliferation of malevolent online actors. The six trends powering M&A activity in the Security sector include managed security services, threat detection, AI, compliance management, biometric authentication and fraud prevention.
Starting with our first trend, managed security services. Companies are using these offerings for vulnerability assessment and penetration testing to reduce vulnerabilities. Highlighting this trend, Alpine Cyber Solutions, a managed cybersecurity services provider for SMBs in the US, was acquired by Simulint in January to provide its customers with a single platform that covers all essential features.
Moving on to our second trend, threat detection. Companies are investing in capabilities to detect potential risks as soon as possible to address those security concerns better. Illustrating this trend, Maltiverse, a threat intelligence platform, was sold to Lumu in March to enhance its threat visibility and response capabilities so its customers can better manage cyber incidents.
Pivoting to our third trend, AI. AI in the Security sector is used to generate insights into the health of digital infrastructure. Showcasing this trend, Dassana, a provider of AI-powered security intelligence solutions, was bought by Deepwatch in February to offer security professionals real-time insights into their company’s security posture.
Shifting to our fourth trend, compliance management. As the global regulatory landscape evolves and becomes increasingly complex, modern tools are needed to avoid large fines. Highlighting this trend, Napier AI, an end-to-end intelligent compliance platform, secured a majority growth investment from Marlin Equity Partners in February to halt money laundering activities.
Our fifth trend is biometric authentication. Security companies use facial recognition software to ensure that only authorized users access private information and networks. Illustrating this trend, Oosto, a developer of AI-powered facial recognition and video analytics software, was acquired by Metropolis in March to expand the company’s reach.
Lastly, our sixth trend is fraud prevention. Organizations and individuals are turning to solutions that prevent fraud and the massive economic losses of this crime. Showcasing this trend, Celeri, a developer of AI-powered fraud prevention software, was bought by Esusu in January to equip property owners with tools to combat rental fraud.
Buyers are eager to grow their exposure to this space and are sitting on trillions of dollars they must deploy. Cybercrime is a major concern for organizations and individuals around the globe and companies that provide solutions to manage these risks are in high demand.
