July 24, 2025 – Dallas, TX and Los Angeles, CA – Solganick has published its latest mergers and acquisitions (M&A) update report on the Cybersecurity industry sector, covering Q2 2025. 

Here are the highlights to the report:

• In Q2 2025, M&A transaction activity for cybersecurity companies rebounded strongly to 114 deals, compared to the previous quarter (96) and the same period last year (90). The quarter started at a slower pace in April, possibly due to macroeconomic and policy uncertainty, but ramped substantially in May and June.
• We expect continued consolidation activity by strategic buyers in 2H 2025, prioritizing the acquisition of critical capabilities and accretive growth, as reflected by recent transactions such as Proofpoint/Hornetsecurity ($1 billion), Zscaler/Red Canary ($675MM), and Palo Alto Networks/Protect AI ($500MM+).
• Infrastructure constituted the largest sub-sector of M&A activity, followed by Risk Management and Data Protection. Artificial intelligence (AI) is especially becoming a key focus for acquirers, not only for its security benefits but also because of the escalating risks related to AI-powered applications not addressed by traditional security tools.
• Total funding for venture capital-backed cybersecurity companies reached the highest level in 3 years and totaled $9.4 billion in 1H 2025, up from $8.8 billion in the prior year period.
• Deal count decreased to 497 in 1H 2025, compared with 595 in 1H 2024, reflecting fewer deals overall but a significant contribution from larger deals (>$100MM).
• Valuation multiples for publicly traded cybersecurity companies ranged from a median of 14.2x EV/2025E revenue for high-growth vendors (those growing more than 20%) to a median of 5.3x EV/2025E revenue for low-growth vendors (those growing less than 10%), a substantially wider gap from the previous quarter (8.9x versus 5.5x).

You can download the complete report here:

Solganick Cybersecurity M&A Update – Q2 2025

About Solganick

Solganick is a data-driven investment bank and M&A advisory firm exclusively focused on software and technology services companies. The deal team has completed over 200 M&A transactions to date and is recognized by Axial and other industry leaders as a top investment banking firm. Established in 2009 with offices in Dallas and Los Angeles.

Its cybersecurity M&A practice is one of its fastest-growing sectors led by our Director of Cybersecurity M&A, Michael Kim, with approximately 20 years of experience in the sector.

For more information on this report or to inquire about an M&A transaction in the cybersecurity sector, please contact us for more information.