Cybersecurity Annual Report 2025

Cybersecurity M&A Activity Lower Middle Market

(In Millions of USD)

21

21

14

12

12

11

10

859.3

802.9

8

7

7

7

6

486.4

470.8

455.7

414.7

401.9

353.7

338.0

224.2

223.7

188.6

2022 Q1

2022 Q2

2022 Q3

2022 Q4

2023 Q1

2023 Q2

2023 Q3

2023 Q4

2024 Q1

2024 Q2

2024 Q3 2024 Q4

Total Deal Size in ($M)

Deal Count

• M&A volume in cybersecurity software picked up in LTM H2 2024, reaching a total deal value of $768.4M – This represents 86.4% YoY growth in deal size. However, the deal count remained the same, indicating an increase in average transaction value • 30 strategic deals took place in 2024, which represented 85.7% of all deals done in the sector – By deal size, these transactions represented 77.2% of the entire pool, depicting aggressive inorganic growth and overall industry consolidation • M&A deals in the lower middle market ($5-$150 million) in 2024 represented 7.9% of all transactions

Source: Pitchbook as of December 31, 2024. Note: This analysis includes only those deals in the lower middle market that had a disclosed deal value.

13

Made with FlippingBook - Share PDF online