Cybersecurity M&A activity remained resilient in Q3 2026, with 72 announced transactions bringing the year-to-date total to 225. Annualized volume of 300 transactions was broadly consistent with 2025, while annualized deal value of $16.6 billion remained below the prior year. Steady mid-market dealmaking and fewer large transactions continued to characterize activity.
Public market valuations recovered during Q3, although dispersion across the sector widened. As of September 30, 2026, Kroll’s cybersecurity index traded at a median enterprise value to next 12 months revenue multiple of 6.7 times. Since January 2025, the cybersecurity software transaction sample has recorded a median EV/revenue multiple of 12.0 times.
Looking ahead, we expect buyer interest to remain focused on AI-agent security, data and identity protection, and consolidation across security platforms and services. Proofpoint’s proposed $6.3 billion acquisition of Varonis, announced after quarter-end, reinforced demand for integrated data and AI security capabilities. Critical infrastructure, operational technology and Internet of Things protection, alongside security solutions for smaller enterprises, should continue to attract strategic acquirers and financial sponsors.
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