Amid rising hacking threats globally, mergers and acquisitions (M&A) among cybersecurity firms are on track to reach an all-time high this year, driven by major companies aggressively acquiring to bolster integrated platform competitiveness. Meanwhile, calls are growing for South Korea's relatively inactive domestic security industry to enhance its capabilities through inter-company collaboration.
According to the *2026 Q3 Cybersecurity Market Report* published by U.S. cybersecurity investment bank Momentum Cyber, global security M&A deals from January to September 2026 totaled 336, a 9% increase year-on-year. The combined value of 51 disclosed transactions amounted to $15.4 billion (approx. 22 trillion KRW).
Momentum Cyber projected annual M&A activity to reach approximately 449 deals in 2026, surpassing last year's 404 and setting a new record. The third quarter alone saw 117 deals, a 24% year-on-year increase and a quarterly high.
Unlike last year's mega-deals—such as Google's $32 billion acquisition of *Wiz* and Palo Alto Networks' $25 billion purchase of *CrowdStrike*—this year's market was dominated by mid-to-small-scale M&A aimed at securing critical technologies and talent.
Global security firms expanded their platforms through acquisitions. Palo Alto Networks acquired *Koios* to enhance AI-driven endpoint security and *Console* to automate security operations. CrowdStrike broadened its business by acquiring *SGNL* (access management) and *Ceraptic Security* (browser security), and recently announced plans to acquire *Dreadnought* (AI vulnerability verification) and *FiddlerAI* (agent behavior tracking). Cisco strengthened AI agent and non-human identity security by acquiring *Astryx Security*.
Competition to secure AI security technologies intensified. AI-focused M&A surged from 10 deals in 2025 to 40 in the first nine months of 2026, as companies opted to acquire promising firms rather than develop in-house capabilities like AI agent data access controls.
In contrast, South Korean security firms' M&A activity remained limited. Notable deals included Daekyo CNS's acquisition of Handreamnet, LG Uplus's purchase of Pagonetworks, Softcamp's acquisition of Friendly, and ICTK's planned takeover of Withnetworks. While these aimed to secure technology and diversify business, they lagged behind global peers in scale and scope.
Experts argue that domestic firms face limitations relying solely on in-house R&D amid the industry's shift toward integrated platforms. They advise accelerating collaboration and consolidation to narrow the gap with global leaders.
A security industry insider noted, “While companies recognize the need for integrated platforms, business interests hinder active collaboration or M&A. To catch up with global competitors, domestic firms must proactively pursue partnerships and technology integration.”
