What's a World-Class Cybersecurity Team Worth?

Accelerating High-Value Cybersecurity M&A Led by Public Strategics Paying a Premium for Elite Security Teams & Their Platforms

An Analysis of the Top 100 Cybersecurity M&A Transactions by Enterprise Value Per Employee

Cybersecurity M&A valuations have shifted in a fundamental way and the data tells a compelling story about what acquirers are really paying for. Understanding what drives premium valuations has become increasingly critical for founders, investors, and strategic acquirers alike. Our latest analysis reveals a striking pattern: elite cybersecurity teams are commanding unprecedented valuations on a per-employee basis, fundamentally reshaping how the market values talent, technical capability, and execution speed.

The Methodology: Measuring Value Beyond Headlines

Since 2019, we’ve analyzed every cybersecurity M&A transaction with a disclosed value above $10 million, building a normalized dataset that links enterprise value to employee count at the time of acquisition. This comprehensive approach has yielded a dataset of 457 companies with complete employee counts and disclosed deal values.

This methodology allows us to compare transactions on a like-for-like basis across different stages, business models, and market cycles—shifting the focus from headline deal size to how acquirers actually value teams, talent density, and execution leverage in cybersecurity outcomes.

By The Numbers: The State of High-Value Cyber M&A

The data paints a compelling picture of the current cybersecurity M&A market:

457 disclosed deals over $10M since 2019
$384M median deal value
$3.7M median deal value per employee
91 median employee count
82 of the Top 100 were strategic deals
59 of the Top 100 were acquired by public companies
13 of the Top 100 were PE platform deals
5 of the Top 100 were PE-backed strategic deals

What Makes This Market Unique?

Focusing on the Top 100 transactions by Enterprise Value per employee, several clear patterns emerge that distinguish this segment of the market:

Strategic Dominance : Strategic acquirers dominated with 82 of 100 deals, underscoring the premium placed on speed, capability acquisition, and scarce technical talent. Public companies such as Palo Alto Networks and CrowdStrike were responsible for 59 of those acquisitions.

The Premium for Talent: Across the Top 100, the median value per employee was $3.7 million, with companies transacting at a median headcount of just 91 employees and a median enterprise value of $384 million.

Private Equity Activity: While strategic buyers dominate, private equity accounted for significant activity, including 13 platform investments and 5 PE-backed strategic acquisitions.

This data highlights how concentrated, AI-driven teams continue to drive disproportionate value in cybersecurity M&A.

Market Segmentation: Understanding the Value Distribution

By Enterprise Value Per Employee

The distribution of deals by EV per employee reveals the concentration of premium outcomes:

This distribution demonstrates that the majority of high-value acquisitions cluster in the $3-$6M range, but a significant portion (35%) command even higher premiums.

Geographic Distribution

The geographic breakdown of the Top 100 shows clear regional strengths:

The strong representation of Israeli companies reflects the country’s continued reputation as a cybersecurity innovation hub, while the U.S. dominance underscores the maturity and scale of the American cybersecurity ecosystem.

Deal Activity Over Time

Transaction timing shows evolving market dynamics:

The surge in 2021 reflects the peak of the cybersecurity investment boom, while the sustained activity in 2024-2026 suggests a maturing market with continued strong demand for elite teams.

The Top Acquirers: Who's Paying Premium Valuations?

The concentration of repeat acquirers is one of the most telling aspects of this market. Among the Top 100 acquisitions by EV per employee, a small group of strategic buyers consistently appear:

Leading Acquirers by Deal Count:

Beyond these leaders, notable repeat buyers include Google, ServiceNow, Tenable, and Permira—signaling a pattern of disciplined acquisition behavior. In total, there are 61 unique buyers in the Top 100, but 18 acquirers appear more than once.

What This Concentration Reveals

These repeat buyers tend to focus on narrowly scoped AI-enabled teams, where speed to measurable product impact matters more than organizational scale. They know exactly what they’re buying and why—and they’re willing to pay premiums to get it.

What Drives Premium Outcomes?

The concentration of repeat acquirers highlights a fundamental truth: the highest per-employee outcomes are not random. They are created by buyers who possess:

Strategic Clarity

Public strategics dominate the upper end of the EV-per-employee spectrum, reflecting both balance sheet strength and urgency to internalize differentiated capabilities.

Acquisition Discipline

Repeat buyers demonstrate the ability to identify and integrate elite teams effectively, turning acquisitions into measurable product improvements quickly.

Focus on Capability Over Scale

The market increasingly values teams that can compress years of product development into a single transaction, rather than simply adding headcount or revenue.

Private Equity Evolution

While smaller in count, PE participation is increasingly visible among repeat buyers as firms pursue platform defensibility through targeted talent acquisition.

The Top 100: Detailed Breakdown

Tier 1: Elite Valuations ($6M+ Per Employee)

The top tier of transactions represents acquisitions where acquirers paid extraordinary premiums for elite teams:

#1. Wiz → Google (Mar 2025)

#2. SGNL → CrowdStrike (Jan 2026)

#3. ExpressVPN → Kape Technologies (Sep 2021)

#4. Ask Sage → BigBear.ai (Nov 2025)

#5. Expanse → Palo Alto Networks (Nov 2020)

Understanding the Premium

These top-tier acquisitions share common characteristics:

Cutting-edge technology in high-demand categories (cloud security, identity, AI)
Exceptional talent density with small, highly skilled teams
Strategic urgency from acquirers seeking to fill critical capability gaps
Strong product-market fit with clear paths to revenue integration

Tier 2: High-Value Acquisitions ($6M-$7M Per Employee)

The second tier represents strong premium valuations across diverse categories:

Notable Transactions Include:

Cyera → Strategic Acquirer (Oct 2024): $162M / 23 employees = $7.0M per employee
Sontiq → TransUnion (Oct 2021): $638M / 91 employees = $7.0M per employee
Auth0 → Okta (Mar 2021): $6.4B / 935 employees = $6.9M per employee
GDC → Refinitiv (Apr 2022): $307M / 45 employees = $6.8M per employee
XM Cyber → Schwarz Group (Nov 2021): $722M / 110 employees = $6.6M per employee

Tier 3: Premium Standard Acquisitions ($4M-$5M Per Employee)

This tier represents the largest segment of the Top 100, with 63% of deals falling into this range:

Key Transactions:

CyberArk → Palo Alto Networks (Jul 2025): $25B / 4,773 employees = $5.2M per employee
Silk Security → Armis (Apr 2024): $150M / 30 employees = $5.0M per employee
Portshift → Cisco (Oct 2020): $80M / 16 employees = $5.0M per employee
Isovalent → Cisco (Apr 2024): $650M / 147 employees = $4.4M per employee
Avalor → Zscaler (Mar 2024): $350M / 82 employees = $4.3M per employee

Market Insights: What The Data Tells Us

1. AI-Driven Teams Command Premiums

Companies building AI-enabled security capabilities are consistently achieving higher per-employee valuations. The emergence of AI Security as a distinct category—with multiple deals in the Top 100—demonstrates how transformative technology drives premium outcomes.

2. Identity & Access Management Remains Hot

With 10+ deals in the Top 100, IAM continues to attract strategic attention and premium valuations. The category’s importance in zero-trust architectures and cloud security makes it a priority for platform builders.

3. Public Strategics Lead the Market

The dominance of public company acquirers (59 of Top 100) reflects:

4. Team Size Matters—But Not How You Think

The median employee count of 91 suggests that optimal team size for premium valuations is relatively small. These aren’t large organizations; they’re concentrated teams of elite talent solving specific, high-value problems.

5. Geographic Concentration Reflects Innovation Hubs

The 73% U.S. / 19% Israel split reinforces these regions’ positions as global cybersecurity innovation leaders, though Rest of World representation (8%) suggests emerging opportunities globally.

Statistical Summary: The Distribution of Value

Looking at the complete Top 100 dataset:

Metric	Enterprise Value
Mean EV	$491M
Median EV	$384M
Top 10% EV	$4,421M
Top 25% EV	$952M
Top 75% EV	$179M

Metric	Employee Count
Mean	126
Median	91
Top 10% EV	1,231
Top 25% EV	317
Top 75% EV	49

Metric	EV/Employee
Mean	$3.9M
Median	$3.7M
Top 10% EV	$6.4M
Top 25% EV	$4.7M
Top 75% EV	$3.0M

What This Distribution Reveals

The relatively tight clustering around the median ($3.7M per employee) for the majority of deals, with significant outliers at the high end, suggests that:

Strategic Implications for Founders and Investors

For Founders Building Cybersecurity Companies

Focus on Talent Density: The data overwhelmingly supports building small, exceptionally talented teams rather than scaling headcount prematurely. Companies with 50-150 employees are achieving massive valuations.

Target High-Value Categories: AI Security, IAM, Cloud Security, and Security Operations consistently command premium valuations. Positioning within these categories matters.

Build for Strategic Acquirers: With public strategics representing 59% of Top 100 deals, understanding their needs and product roadmap gaps creates clear exit opportunities.

Consider Optimal Exit Timing: While the market has matured since the 2021 peak, 2024-2026 data shows sustained strong activity, suggesting continued opportunities for premium exits.

For Strategic Acquirers

Repeat Acquisition Strategies Work: The concentration of repeat buyers suggests that disciplined, consistent acquisition strategies deliver value. Building expertise in integration and talent retention pays dividends.

Premium Valuations Reflect Strategic Value: Companies paying $5M+ per employee are making strategic bets on capability acceleration. These aren’t financial plays—they’re technology and talent acquisitions.

Build for Strategic Acquirers: With public strategics representing 59% of Top 100 deals, understanding their needs and product roadmap gaps creates clear exit opportunities.

Speed Matters: The market rewards acquirers who can move quickly to secure scarce technical talent and proprietary technology.

For Investors

Back Small, Elite Teams: The median employee count of 91 suggests that efficient capital deployment focused on talent quality rather than headcount growth optimizes for premium exit multiples.

Target Categories with Strategic Demand: Following where repeat acquirers are consistently investing provides clear signals about sustainable demand.

Value Creation Through Talent: Traditional SaaS metrics matter, but in cybersecurity M&A, team composition and technical capability are equally—if not more—important valuation drivers.

The Future of Cybersecurity M&A

Several trends suggest the market for elite cybersecurity teams will remain strong:

1. Continued AI Integration

As AI becomes table stakes across security categories, companies building AI-native solutions will continue commanding premiums.

2. Platform Consolidation

Major security platforms will continue acquiring point solutions to build comprehensive offerings, driving sustained M&A activity.

3. Talent Scarcity

The fundamental shortage of elite cybersecurity talent means teams with proven capabilities will remain highly valued.

4. Private Equity Evolution

PE firms are becoming more sophisticated cybersecurity acquirers, potentially creating additional demand for premium assets.

5. Geographic Expansion

While U.S. and Israel dominate today, emerging innovation hubs may produce the next generation of high-value targets.

Conclusion: Value Accrues to Teams That Execute

The data from our Top 100 analysis reinforces a fundamental truth about modern cybersecurity M&A: value accrues to teams that compress years of product development into a single transaction, and to acquirers who repeatedly demonstrate the ability to identify and integrate those teams effectively.

At a median valuation of $3.7 million per employee, elite cybersecurity teams are commanding premiums that reflect their ability to:

For founders, this represents enormous opportunity—but also a clear mandate to focus on talent quality, technical excellence, and strategic positioning. For acquirers, it underscores the importance of knowing exactly what you’re buying and why.

The cybersecurity M&A market has matured beyond headline valuations to a more nuanced understanding of value creation through team acquisition. Those who understand this dynamic—and execute accordingly—will continue to achieve premium outcomes.

About Momentum Cyber

Momentum Cyber is the premier trusted advisor to the global cybersecurity industry, with an unparalleled track record in cybersecurity M&A:

68 cybersecurity transactions completed
$25B+ in cybersecurity deal value
$375M average cybersecurity deal value
27 years of cybersecurity expertise
6,000+ cyber companies tracked in our proprietary CYBERcloud database
30,000+ strategic and investor contacts

Our team combines deep industry expertise, unrivaled relationships with cybersecurity executives and board members, and proprietary research that establishes us as thought leaders in the space.

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For more information about this research or to discuss your cybersecurity M&A needs, contact us at Jake@momentumcyber.com.

Author

Jake Pollock

Head of Research

Jake Pollock has extensive experience across cybersecurity and software investment banking and research. Prior to joining Momentum Cyber, he served as Head of Research at a boutique, middle-market investment bank focused on software M&A, where he led research efforts supporting transaction execution and client advisory. Earlier in his career, he was an analyst at Bain & Company.

This analysis is based on publicly disclosed transaction data from 2019-2026, proprietary research from Momentum Cyber’s CYBERcloud database, and information from PitchBook, 451 Research, and LinkedIn. All statistics relate to the Top 100 deals on an EV/Employee basis with a minimum of 10 employees.