Cybersecurity deal activity continued to accelerate in Q2 2025, building on the strong start to the year. At the mid-year point, annualized deal volume is on track to exceed 200 transactions for the first time. The quarter was dominated by mid-market activity, with only Proofpoint’s acquisition of Hornet Security approaching the $1 billion mark, while the landmark $25 billion acquisition of Cyberark by Palo Alto Networks fell into Q3 2025.
A key theme was the growing emphasis on AI, with buyers seeking to embed generative AI and agentic automation into threat detection, triage and response—highlighted by F5’s acquisition of Fletch and Snyk’s acquisition of Invariant Labs. Cloud security remained a priority, sustaining strong demand for well-positioned cloud-native application protection platforms (CNAPP) and data security posture management (DSPM) assets. Identity management also returned to focus, driven by the rise of nonhuman AI agents and the growing need for automated identity controls. Radiant Logic’s investment from Ridgeview Partners and Cyera’s acquisition of Otterize illustrate this trend. Other themes included the rising complexity of threat environments, which is fueling investment in exposure management, as well as growing regulatory pressure and enterprise demand for integrated, AI-enabled platforms.
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