It’s Still a Human-Led World and the Bots Are Living in it
Momentum Cyber’s Cybersecurity Services Market Update highlights a historically active M&A market defined by durable enterprise demand, private equity consolidation, and rising interest in AI-enabled service models. With Cyber Services reaching a record 45 M&A deals in Q1 2026, deal count growing at a 15% 7-year CAGR, and enterprises projected to spend twice as much on services as products, the market remains one of the most attractive and resilient segments in cybersecurity.
Executive Summary
Cybersecurity Services M&A has entered a historic acceleration phase as AI increases, rather than replaces, demand for human-led expertise. As attackers use AI to scale phishing, automate attacks, and weaponize code generation, enterprises are relying more heavily on Security Consulting, MSSPs, and MDR providers to defend increasingly complex environments. Leading services firms are embedding AI into threat detection, SOC automation, incident response, offensive security testing, and more, creating operational leverage while preserving the human judgment customers still require. With a fragmented landscape, recurring revenue models, and strong EBITDA profiles, Cyber Services remains a durable roll-up opportunity for private equity and strategic buyers.
Key Report Takeaways.
Key Report Takeaways.
Cyber Services deals in Q1 ’26 (most ever)
45
7-year deal count CAGR
15
%
Of Cyber Services deals completed by PE
52
%
Security Consulting deals since 2024
170
Enterprise spend on Services vs. Product
2:
1
Security Consulting deals since 2024
174
Projected YoY M&A growth for Advanced MSS & MDR firms
105
%
North American share of global Cyber Services M&A
48
%
Cyber Services share of Total Cyber M&A in 2026
39
%
Download the Full Report
The complete Cybersecurity Services Market Update includes:
- Executive summary on why AI is accelerating human-led services
- Annual Cyber Services M&A deal count and volume since 2019
- Quarterly Cyber Services M&A deal count and volume since 2019
- M&A transaction volume by Cyber Services sub-sector
- PE vs. Strategic buyer activity including investor target criteria
- M&A analysis across Security Consulting, MSSPs, and Advanced MSS & MDR
- Cyber Services financing trends by volume, count, deal type, & region
- Notable recent M&A and financing transactions across Cyber Services
- Current cyber-centric PE-backed buy-and-build strategies
- Company spotlights for the leading Cyber Services firms
About
Momentum Cyber is the premier trusted advisor to the global cybersecurity industry, providing M&A advisory, capital raising, and strategic research services. With 68 cybersecurity transactions completed, $25B+ in cybersecurity deal value, and unparalleled industry relationships, Momentum Cyber delivers mission-critical advice to leading founders, CEOs, and decision-makers.
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