Industry Report: Cybersecurity Services [Solganick & Co.]

Key Report Highlights

• Sustained M&A Momentum Across Cybersecurity Services
  The sector recorded 105 deals in Q4 2025 and 76 additional transactions through February 2026, reflecting continued consolidation across managed security services (MSSPs) and consulting providers.
• Managed Security Services Lead Early 2026 Activity
  Deal flow is heavily concentrated in MSSPs, with notable transactions like Alert Logic / LevelBlue and Beyond Secure / NuView, highlighting strong buyer demand for scalable, outsourced security platforms.
• Specialization Driving Strategic Acquisitions
  Buyers are targeting firms with niche capabilities—particularly in identity & access management (IAM), managed detection and response (MDR), and governance, risk, and compliance (GRC)—as enterprises demand more advanced, integrated security solutions.
• AI and Automation Reshape MSSP Value Proposition
  The managed security services market is projected to grow to ~$77B by 2031, driven by AI-enabled SOC automation, XDR adoption, and compliance mandates, with AI-powered providers gaining pricing power and competitive advantage.
• Private Equity and Platform Roll-Ups Accelerate Consolidation
  Sponsor-backed platforms are actively executing roll-up strategies, acquiring regional and specialized providers to build national cybersecurity services platforms and capitalize on rising demand for outsourced security solutions.

Solganick & Co. is a boutique investment bank specializing in M&A advisory services for software and IT services companies. Founded in 2009, the firm delivers strategic guidance and transaction execution for middle-market clients across high-growth sectors such as cloud services, cybersecurity, data analytics, digital transformation, AI consulting, and enterprise software.

With offices in Los Angeles and Dallas, Solganick leverages a data-driven, industry-focused approach to connect founders, private equity, and strategic acquirers. The firm advises on sell-side and buy-side mandates for companies typically generating $10 million to $200 million in revenue and $2 million to $20 million+ in EBITDA.

Solganick’s senior team brings deep domain expertise and a targeted network of technology buyers and investors. The firm is consistently recognized among the top investment banks in the U.S. for technology services M&A, and conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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