Dealings, Disputes, and Artificial Intelligence: Which Factors Initiate Cybersector Mergers and Acquisitions?

In the ever-evolving landscape of technology, the cybersecurity sector has witnessed a surge in mergers and acquisitions (M&A) activities. This trend is a response to the increasing complexity of cyber threats, market volatility, and the need for holistic solutions.

In a significant move, Sapiens, a global insurance software provider, was acquired by private equity firm Advent for $2.5 billion in 2025. The acquisition aims to accelerate AI and SaaS innovation in insurtech. Simultaneously, the healthtech sector saw a record 242 M&A transactions in the first half of 2025, driven by AI and digital health trends.

Swiss IT and software companies, including those in cybersecurity, have gained relevance in M&A activities. Strategic buyers are focusing on cloud, SaaS, data analytics, cybersecurity, and AI sectors. One such example is the acquisition of CyberArk by Palo Alto Networks, a move described by executives as an effective way to holistically address future cyber threats.

The chaotic IPOs market of 2021, amidst the Covid-19 pandemic, has led cyber companies to seek alternative paths to growth and liquidity. This trend is evident in the acquisition by SentinelOne of Prompt Security for $250 million, an move aimed at expanding into generative AI security.

Another notable acquisition is Italy's major defense group Leonardo acquiring SSH Communications Security Corporation, a European cybersecurity company, this summer. The acquisition aims to support Leonardo's European leadership in the holistic cyber space.

Allurity, a European cybersecurity leader, acquired Onevinn, a Swedish company in the intelligent automated security and managed services area, in April. Onevinne, a Microsoft partner in Europe, is a strategic addition to Allurity's portfolio.

The volatility in capital markets and dynamics in the cybersecurity sector have led to an exponential increase in cyber M&A in the U.S., Europe, and Asia. Many cyber players believe that the future of cyber procurement is holistic, and cyber buyers, especially CISOs, will be looking for a single platform that provides various cyber solutions.

The growing cyber services market in light of the rising cyber threats has contributed to the trend of cyber companies funding acquisitions internally. Many cyber companies have accumulated significant cash, allowing them to finance acquisitions more easily without relying on Private Equity financing. SentinelOne, an American public company, has $1 billion cash on hand as of April.

Prevention of data leakage from generative AI tools is a key area of growth for many cyber companies. The deal between Palo Alto Networks and CyberArk is an example of global cybersecurity leaders making acquisitions to strengthen their positions in the holistic cyber space.

The M&A market is now considered as a quicker and more stable path for founders to cash in. The cybersecurity M&A trend is expected to continue to grow as public markets struggle to provide the same stability and returns. This trend underscores the importance of cybersecurity in the digital age and the need for continuous innovation and consolidation in the sector.

Dealings, Disputes, and Artificial Intelligence: Which Factors Initiate Cybersector Mergers and Acquisitions?