KROLLCvbersecuritySectorM&A Industry InsightsFall2025
CybersecuritySectorM&AIndustry Insights, Fall2025CybersecurityM&A activity accelerated markedly in Q3 2025,with 70 deals totaling $27.1bilion in disclbsed deal value and pushing theyear-to-datedealcounttoarecord234. DealvalueinthequarterwasdominatedbyPaloAltoNetwork's$24.1-billonacquistionofCyberAnkbringingtheyear-to-data dealvabue to $63 bilion, andjust$138 biionbelowtherexondlofS7.1biMonsetin2021.TheCyberArkacquisitionundlersaoredidentitymanagement'sstrategicimportanceto CISOs, particularty as agentic Al andIloT adoption propelmachineand device idenfities to the center of enterprise risk management Several major deals spotighted the sector's shift to Alfirst security solutions,including Chedk Point's acquisition of Lakera, FS's buyaut of Calypso Al, and Sentinel Onel's purchases of Prompt Security and Observo.ai.The othernotabe theme in the quarter was IoT coming to the fore in the wake of expanding device deploymerts with Mitsubishi's acquisition of OT securityederNozomiNetworksarvices,Accenture'sacquisitionofCyberCXsignaledacceleratingaonvergence between aurtomation andhuman expertise-managed,threatintelligenceandincidentresponse-divingservicesM&A,particaularlyasAlbecomesintegraltotheMSSP ecosystemNatably high-profile breaches, such @as the estimated $2.5-billion Jlaguar Land Rover incident during the quarter, amplifed urgency forinvestment incomprehensive cybersecurity platforms. Meanwhile regulatory thilwincds-including the SEC's cyber disclosure nules,the DigitalOperationalResilenceAtIDORA)intheEU, and theUK'sCyberSecurity &Resilence EBil-areincreasinglyalso sthapingM&A activity as buyerstargetgoverance, risk and(3sawthewel-recaived$900-milionIPOofNetskope,evenasthetopquartile forEV/nexttwelvemanths'revenue forpublicstockstradeddownifrom13.0xto 10.7xover the quarter.Investorsneverthelesscontinue to rewwardscale andproduct breadth,supporting whatweexpecttobe acontinuingthemeofplatfomconsolidationthroughM&Asfortheremainder of 2025KROLL2
By Q3,2025Sets a Record for Cybersecurity M&A Deal VolumeYear to date deal value is nearly double the deal value in 2024, boosted by Palo Alto's acquisition of CyberarkGlobal cvbersecurityM&A activitsofCybarArkto$24bn$212bm2015201620172018202120222024Q1-Q32025DealValueDealCourtKROLL
Largest Cybersecurity Acauisitionsin032025PaloAlto'sCvberArk deal led deal value in Q3, following Mitsubishi's nearly $1-billion acquisition of Nozomi Networksy2025CYBERARKacquiredbydnedbyty paloaltoOLAKERA<angeaacquiredbyCROWDSTRIKIKROLL
Precedent Transactions-CybersecuritySoftwareSoftware cybersecurity deals since Jan-24 have had median EV/ revenue multiple of 8.1xMedan:8.1xUAPH/A30Y5-Aewgz-doswonn2eofipset52·*EW00010sz-doscownnzytuomaOSt12.90Z-AON水FZ-do501vz-8nyysaaloe-ew5z-dosweereay饮-AewDateAHUT→XETarget可006xprgauCET1eodyoond000'TIHDISII8STThge2006AcquirerOSTEV(Sm)D61D5EBDDC606D0SOSE0697KROLL
Precedent Transactions-Managed Security ServicesRecent managed cyber services deals have had median EV/ EBITDA multiple of 1.1xMedan:111xYa山田/AEZ·AyEZ-wTt2-0yRom12.9g2z...
