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Clairfield Report Reviews Cybersecurity M&A and 2026 Security Trends

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Original report publisher: not verified. Report discovered via Awesome Annual Security Reports.

Summary

Clairfield’s March 2026 sector report reviews cybersecurity deals, valuations, investment and market performance, and 2026 security trends, including demand for cloud, identity, AI, ransomware defense and incident response.

Key points

  • The report counts 400 cybersecurity M&A deals in 2025, including 165 acquisitions by private equity, with disclosed deal value exceeding US$84 billion.
  • It puts Israel’s 2025 cybersecurity exit value at US$72.6 billion, including deals signed but not closed, and sector fundraising at US$8.27 billion.
  • The report says the HACK ETF underperformed the S&P 500 by approximately 10% over the past year; its 25 companies had a mean price-to-sales ratio of 8.93 and a median of 5.38.
  • Highlighted 2026 security trends include cloud security, identity and access management, AI and threat intelligence, ransomware defense, endpoint and network security, and governance, risk and compliance.
  • Citing a December 2025 Phenom Institute study, the report says 18% of organizations had fully integrated AI cybersecurity tools and 65% of security teams reported challenges integrating them with legacy systems.
  • The report says ServiceNow agreed to acquire Armis for US$7.75 billion in an all-cash deal, valuing it at about 23 times annual recurring revenue.

Article Details

Publisher
Clairfield International
Report Period
2025–2026; published March 2026
Scope
Global cybersecurity sector market update covering M&A, valuations, investment trends, and selected Israeli and Brazilian market activity.
Key Statistics
  • The report states that the cybersecurity sector recorded 400 M&A deals in 2025.
  • Of the 400 reported 2025 M&A deals, 165 involved companies acquired by private equity.
  • Disclosed cybersecurity M&A value exceeded US$84 billion in 2025.
  • A December 2025 study cited by the report found that 18% of organizations had fully adopted and integrated AI cybersecurity tools.
  • The same study found that 65% of security teams reported challenges integrating AI security solutions with legacy systems.
Recommendations
  • Adopt Zero Trust security models, phishing-resistant multi-factor authentication, and passkeys.
  • Invest in AI-driven detection and response capabilities.
  • Strengthen ransomware prevention, detection, incident response, and recovery capabilities, including through MDR services.

Vendors

Armis- In parallel, **ServiceNow’s acquisition of Armis** for US$7.75 billion further underscored global strategic demand for Israeli cybersecurity platforms, particularly asset visibility and operational security. Together,CyberArk- A few months later, **CyberArk** was acquired by Palo Alto Networks for US$25 billion, becoming the second-largest Israeli cyber exit to date.CybereasonTwo months later, LevelBlue completed the acquisition of CybeReason.ISH TecnologiaISH Tecnologia is a Brazilian cybersecurity services and software provider that delivers monitoring, detection and response services, as well as infrastructure solutions, to many of the largest corporate clients inLevelBlueIn August 2025, LevelBlue completed the acquisition of Trustwave, creating the world's largest pure-play MSSP.Palo Alto Networks- A few months later, **CyberArk** was acquired by Palo Alto Networks for US$25 billion, becoming the second-largest Israeli cyber exit to date.ServiceNow- In parallel, **ServiceNow’s acquisition of Armis** for US$7.75 billion further underscored global strategic demand for Israeli cybersecurity platforms, particularly asset visibility and operational security. Together,TrustwaveIn August 2025, LevelBlue completed the acquisition of Trustwave, creating the world's largest pure-play MSSP.Vision Cybersecurity- **Vision Cybersecurity** was created through the spin-off of ISH’s private sector activities, with more than 400 clients. Its platform combines in-house technology with global partnerships.Wiz- **Wiz** was acquired for US$32 billion, marking the largest cybersecurity acquisition ever globally and the biggest exit in Israeli cyber history.

Countries

Braziland response services, as well as infrastructure solutions, to many of the largest corporate clients in Brazil.ChinaState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.IranState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.Israel- [Middle East Conflict and Israel’s Cyber Exits](#middle-east-conflict-and-israels-cyber-exits)North KoreaState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.RussiaState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.TaiwanCyber operations are now embedded into conflicts and tensions involving Ukraine, Taiwan, the Middle East, and the South China Sea.UkraineCyber operations are now embedded into conflicts and tensions involving Ukraine, Taiwan, the Middle East, and the South China Sea.

Industries

Cybersecurity# Clairfield Sector Report: CybersecurityDefenseState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.EnergyState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.TelecommunicationsState-aligned groups linked to China, Russia, Iran, and North Korea are actively targeting critical infrastructure, energy systems, telecommunications, defense contractors, financial institutions, and election processes.