Editor’s Notice: SSI has partnered with the funding banking professionals at Capstone Companions to ship in-depth updates on the important thing developments, dynamics and offers defining merger and acquisition (M&A) exercise throughout the Safety Options sector. This sequence, dropped at you by Capstone Companions’ managing director, Tom McConnell, will present readers with complete evaluation of dealmaking throughout goal segments and purchaser sorts, with valuation insights from Capstone’s proprietary analysis.
Safety options M&A exercise gained momentum in 2025 after a number of years of stagnation, invigorated by intense geographic and repair line enlargement initiatives amongst sector contributors. Whole sector deal quantity reached 238 introduced or accomplished offers in full yr 2025 — a document excessive since Capstone started monitoring the sector’s M&A exercise in 2019.
Throughout all areas of the sector, service suppliers — together with methods integration, set up, upkeep, restore, take a look at, inspection and consulting — represented the biggest share (76.1%) of M&A targets in 2025.
The fireplace and life security phase of the market fueled the 22.1% year-over-year (YOY) enhance in whole sector deal quantity, accounting for 52.1% of M&A exercise. Operators within the house have sought to develop their geographic presence by rolling up methods integrators in key geographic development areas.
Gemspring Capital-backed Safety Franchisors and Altas Companions-backed Pye-Barker Hearth & Security have enthusiastically embraced this funding thesis. In 2025, Safety Franchisors acquired six firms and Pye-Barker Hearth & Security acquired 41.
Acquiring ample boots-on-the-ground methods integration capabilities has served as a vital element of inorganic development throughout the hearth and life security phase, driving the heightened deal velocity displayed in 2025.
“Pye-Barker’s mission is to develop full-service life security safety to all communities. As we proceed ahead momentum, bringing aboard integration consultants like these at United Automation will assist us fulfill our targets and shared function to guard,” said Pye-Barker CEO Bart Proctor on the corporate’s September 2024 acquisition of United Automation, in keeping with a deal press launch.
As market competitors fuels service line enlargement throughout disparate parts of the hearth and life security phase, the power to seize further pockets share will seemingly be outlined by methods integration capabilities.
Sector valuations have displayed resiliency in comparison with the broader M&A market. Safety options transactions averaged 2.9x EV/income and 11.7x EV/EBITDA from 2024 via 2025, small however significant features from 2.3x and 11.1x within the prior two-year interval.
As compared, the common U.S. center market M&A EBITDA a number of was 9.4x in 2025 — nicely beneath the 20-year common of 10.8x, in keeping with Capstone’s This fall 2025 Capital Markets Replace. Know-how-exposed sector targets have commanded premium valuations as patrons capitalize on system integration tailwinds.
Software program Provides Differentiation, Delivers Efficiencies
Technological developments have launched new security and safety capabilities to the market, alongside further service-line alternatives for suppliers able to connecting advanced methods.
Know-how-enabled firms had been of specific curiosity amongst patrons in 2025, as clients dealing with turbulent macroeconomic circumstances via many of the yr sought distinctive approaches to combine price and operational efficiencies throughout operations.
Innovation within the entry management and video surveillance segments, together with synthetic intelligence (AI) integrations, have launched superior capabilities to present safety infrastructure whereas avoiding {hardware} substitute prices.
Public sector alternatives served as a key driver of 2025 dealmaking within the house. Persistent staffing shortages within the public security market have strained municipal assets for years. Common police response occasions in main U.S. cities have risen, putting residents in danger whereas overworking present personnel.
Municipalities have more and more turned in direction of non-public safety contractors to outsource public-safety wants, driving a 150% YOY enhance in uniformed guard transactions. Alongside bolstering officer ranks, departments have additionally turned in direction of know-how to fight manpower constraints and introduce operational efficiencies.
Capstone has witnessed the robust demand for public-safety know-how and companies first-hand, advising Additional Responsibility Options (EDS) — a number one supplier of off-duty program administration companies and scheduling software program options to regulation enforcement and public-safety companies — on a major development fairness funding from non-public fairness (PE) agency Bregal Sagemount in June 2025. Phrases of the deal are confidential.
The funding will help EDS’ strategic development initiatives targeted on enhancing its know-how choices, increasing its geographic footprint and rising its portfolio of options for regulation enforcement and public-safety companies.
Seeking to the yr forward, Capstone expects continued consolidation amongst service suppliers, supported by aggressive capital deployment from monetary patrons leveraging sturdy ranges of dry powder and a borrower-friendly credit score market.
Past expansion-driven investments, firms that align with key security issues — significantly these targeted on campus safety initiatives — will seemingly appeal to purchaser consideration. Throughout all segments of the market, technology-enablement and modern software program integrations with present infrastructure will seemingly demand premium valuations from acquirers, permitting clients to refresh outdated {hardware} with new capabilities.
This dynamic is anticipated to supply renewed finish market and M&A requirement for safety methods integrators, significantly these able to managing advanced info know-how (IT) necessities.
Tom McConnell is a managing director and leads Capstone’s Safety business observe as a part of Capstone’s Aerospace, Protection, Authorities & Safety (ADGS) funding banking workforce. Affiliate Brendan Bradley was the lead market intelligence contributor to this text.
