Q4 2025 Cyber Security update: Record deal volumes, shifting threats - and the next wave of consolidation

Cyber risk is no longer confined to classic endpoint and email vulnerabilities. As organisations move further into cloud-first operating models, exposure is increasingly concentrated around identity and access, including the rapid growth of machine identities. At the same time, data sovereignty concerns are forcing boards to think harder about where sensitive information sits and how it is encrypted.

That strategic pressure is translating into transaction activity. Q4 2025 saw the highest volume of cyber security M&A since Q1 2022, with 145 deals across Europe and North America, and an average disclosed deal value of GBP 311m. While volumes in the UK have not fully reflected the international surge, there is considerable pipeline activity pointing to a stronger first half of 2026.

This quarter, we also hosted our annual cyber security sector dinner, bringing together founders, strategic acquirers and private equity investors. Discussion ranged from recent headline incidents to AI adoption by both defenders and attackers, the accelerating push towards vendor consolidation, and what quantum computing could mean for the sector's future security model.

Email us to request your copy of Arrowpoint Advisory's Q4 2025 Cyber Security Market Insights.

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