October 23, 2025 – Los Angeles, CA and Dallas, TX – Solganick has published its latest mergers and acquisitions (M&A) update report on the cybersecurity industry sector, covering Q3 2025.
Solganick's Q3 2025 Cybersecurity M&A Update revealed steady transaction activity with 111 deals, a notable increase from the prior year, suggesting strong momentum into Q4 2025. Strategic buyers actively pursued deals to enhance their artificial intelligence (AI) security stacks and integrate capabilities, exemplified by marquee transactions such as Palo Alto Networks' $25 billion acquisition of CyberArk. Infrastructure, Security Operations, Identity, and Risk Management were the most active sub-sectors, while public cybersecurity companies traded at median valuation multiples of 13.1x EV/2025E revenue for high-growth vendors.
You can download the full report here: Solganick Cybersecurity M&A Update – Q3 2025
Here is a summary of the report:
- In Q3 2025, M&A transaction activity for cybersecurity companies remained steady at 111 deals, compared to the previous quarter (114), and grew significantly from the same period last year (98). The quarter started strongly in July, slowed in August, but finished higher in September – suggesting healthy momentum into Q4 2025.
- Strategic buyers executed several major transactions in Q3 2025, integrating complementary capabilities to capture greater share in key markets, including marquee deals such as Palo Alto Networks / CyberArk ($25B), Mitsubishi Electric / Nozomi Networks ($900MM), and Accenture / CyberCX ($650MM).
- Infrastructure constituted the largest sub-sector of M&A activity, followed by Security Operations, Identity, and Risk Management. Strategic buyers are actively focused on strengthening their artificial intelligence (AI) security stack, which drove key transactions such as Check Point / Lakera ($300MM) and F5 / CalypsoAI ($180MM).
- Total funding for venture capital-backed cybersecurity companies totaled $3.3 billion in Q3 2025, down from $5.1 billion in the previous quarter. Total rounds decreased to 167 in Q3 2025, compared with 209 in the previous quarter. Recent activity was primarily driven by larger rounds, including Quantinuum ($600MM), Ontic ($230MM), and Vanta ($150MM).
- Valuation multiples for publicly traded cybersecurity companies ranged from a median of 13.1x 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%). The recent IPO of Netskope could signal additional public cyber issuances in 2025.
Cybersecurity M&A Deal Volume Chart:
The following cybersecurity M&A transactions were announced in Q3 2025:
Please download the report for more information on the latest cybersecurity M&A activity: Solganick Cybersecurity M&A Update Q3 2025
About Solganick
Solganick is an AI-enabled investment bank focused exclusively on software and technology services companies. Its cybersecurity M&A practice is one of the firms fastest growing industry sectors. For more information on this report, or to inquire about an M&A transaction in the cybersecurity sector, please contact Michael Kim – Managing Director, Cybersecurity M&A.